Kalyani Steels MD says margins are intact despite lower revenue

Kalyani Steels Managing Director RK Goyal said revenue declined in the March quarter due to price reductions agreed with OEM customers, even as profitability remained steady.

Margins of the Pune-based iron and steel forging company are expected to remain in the 20-21% range as the company negotiates a fresh round of price increases to offset a jump in input costs following the US-Iran conflict. "We may get a substantial increase anytime, and that should be able to offset our increased cost," Goyal said.

The company continued to operate at more than 100% capacity utilisation during the quarter.

For the full interview, watch the accompanying video

 

Also Read | Bank of India targets 16-17% loan growth in FY27, aims to cut slippages

The company is also awaiting environmental and forest clearances for its Odisha project before taking the proposal to the board for approval. Goyal said Kalyani Steels has enough internal cash generation and financial flexibility to fund the expansion.



Kalyani Steels, which has a market capitalisation of ₹3,603.78 crore, has seen its shares rise more than 6% over the last year.

Catch all the latest updates from the stock market here