Sarda Energy sees demand uptick, but raw material prices pose worry

Sarda Energy is in focus. CRISIL has upgraded the long-term credit rating on the company as well as on its wholly-owned subsidiary. In an interview with CNBC-TV18, Padam Kumar Jain, director, and CFO of Sarda Energy, discussed the company’s outlook.

Talking about demand, he said, “If you see the demand position for the secondary sector, we don't see much of a problem in demand. There is a good demand, the material is moving perfectly all right and prices are maintained.”

On raw material prices, he said, “As far as price realisations are concerned, pellet prices have definitely come down. So the prices which had reached up to 18,000, are now hovering around 11,000 to 11,500. So, iron ore has seen a major correction on the raw material side. As far as finished prices are concerned, those are more or less maintained at normal levels. As far as silicon, manganese are concerned, prices are hovering around Rs 95,000 to Rs 1,00,000 and those are stable at the current level. In the first quarter, it was somewhere about Rs 85,000 on an average.”