Won't be any steep increase in prices in this quarter: Arun Shukla, JK Lakshmi Cement

economictimes.indiatimes.com:

«Maybe we are entering into demand month, so prices may go up a little bit. But it is not going to be that steep increase in this quarter,» says Arun Shukla, President & Director, JK Lakshmi Cement.

And surely a very good set of numbers, whether you look at it year on year basis or sequentially. But let us talk about realisations is what I want to start with. Because cement prices, they have started seeing a decline since the month of November. Now, what channel checks are suggesting that cement companies may actually take a bit of a price hike as well? Is that something you would concur with? What is your view on this?
Yes, we had a very good set of numbers last quarter and kind of actions which we have taken in the last few quarters, that is getting realised now.

We have done better than industry in terms of cost. We have done better in terms of improving our margin as well. As far as prices go, yes I think prices have not been so impressive.

If you compare prices last quarter over the preceding quarter, I think increase is about 1 to 2% only. Year-on-year basis also, this is almost flat. But what is helping cement industry to improve the margin is reduction in fuel and power costs.

So on an average, reduction has been about more than 20-22%. We have done better than that. Our reduction is more than 25%.

And similarly, I think raw material costs and other efficiency actions which we have been driving, I think that is getting realised. So on price front, yes advantage is coming out of the cost reduction only. Prices have not been improved.

And I see this quarter also prices are going to be range bound. Maybe we are entering into demand month, so prices may go up a little bit. But it is not going to be that steep