Pet coke prices were around $102-106 during the first half of the year, and had gradually softened during the second half. Rupee depreciation during the year also impacted fuel prices.
Even though there is a growth of 16 per cent in net revenue, from Rs 4,443 crore to Rs 5,175 crore during the year, margins were under constant stress due to pressure on cement prices for most part of the year and spiralling Odisha and expansion of West Bengal and Andhra Pradesh are expected to be completed by October and December. Expansion of clinkering capacity at the Jayanthipuram, AP from 3 MTPA to 4.50 MTPA along with WHRS capacity of 27 Mw, is expected to be commissioned in July 2020.
A new cement plant in Kolimigundla, Kurnool District, AP with clinkering capacity of 2.25 MTPA and cement capacity of one MTPA is expected to be commissioned in March 2021. The proposed plant will have railway siding and a thermal power plant of 15 Mw, among other facilities.
The company is planning to meet the capex largely through internal accruals and for balance requirements, if any, through borrowings. The company has incurred aggregate capital expenditure of Rs 1,206 crore for FY19 including for these projects, it said.