Cement producer Sanghi Industries today reported over three-fold jump in its net profit to Rs 26.8 crore for the quarter ended December 31, 2015 on the back of higher income.
The Gujarat-based company had reported a net profit of Rs 7.1 crore for the corresponding quarter of the previous fiscal.
"The company's total income for the second quarter rose 5 per cent to Rs 257.7 crore as against Rs 244.3 crore in the same quarter of last year," the company said in a statement.
Sanghi Industries' Director Alok Sanghi said, "Despite lacklustre demand, the company has been able to achieve good revenue growth due to geographical expansion. We expect revenue growth to improve in next two quarters as our new grinding unit is operational."
Sanghi said the company was focusing on reaching markets that are far off from Gujarat.
Sanghi said uptick in demand is expected from infrastructure projects as stalled projects are getting cleared.
"Domestic demand-supply scenario is likely to remain skewed in favour of overcapacity for next two years.
"However, with demand from government projects rising, we expect this gap to narrow down. Going forward, we also expect higher margin as coastal shipping is likely to reduce our overall transportation cost, " he added.
The company has a 4 million tonnes per annum plant in the Abdasa taluka of Kutch district in Gujarat and is one of the top three players in the state. It is now increasing its presence in Maharashtra and Rajasthan.
The shares of the company closed at Rs 46.75 apiece, down 8.06 per cent on the BSE.
