As an investment banker, Ashish Guha was known for his promptness in closing deals. The most famous of these was a 12-day affair in 2001, when he advised Sunil Bharti Mittal to acquire Spice Cell, owned by fellow billionaire BK Modi. Apart from the pace, it was the finish that gave him a high.
Heidelberg Cement swung into Rs 8 crore loss during Q1 from Rs 19 crore profit it posted in the year-ago period.Total expenses of the company also increased to Rs 352.97 crore from Rs 275.75 crore a year ago, mainly due to costlier raw materials, power and fuel costs and freight charges.
Heidelberg Cements has hiked cement prices by Rs 10 on a 50 kg bag on an average in west and central India. The hike was long overdue due to a prolonged slack season, says Ashish Guha, CEO and MD of the company.
Heidelberg Cement expects average realisations to gradually move above Rs 300/bag levels in near term as there is an uptick in demand post the slack rainy season.
Heidelberg Cement has hiked cement prices by around Rs 5-6/50 on each kilogramme per bag to offset the recent diesel price hike.
Giving his view on the dynamics of the cement sector, Ashish Guha, CEO & MD, Heidelberg Cement explained that in order to put up a cement plant today, one will have to spend about USD 140 a tonne, which would take 3.5-4 years.
On the back of cement prices rising across regions, Heidelberg Cement has seen a year-on-year growth in realization. The cement major which was a decent recovery in demand in the preceding quarter might see the trend continue.
Cement prices were increased in June in few regions. In an interview to CNBC-TV18, Ashish Guha, managing director and chief executive officer of Heidelberg Cement says, the company has hiked prices by Rs 10-15 per bag in Central India from June 1.
The railway freight has been recently hiked to 20%, so margins of Heidelberg would be under pressure going forward because it has not been to pass any significant cost increases to its customers in the last few quarters.
Ashish Guha, managing director and chief executive officer, Heidelberg Cement India in an interview to CNBC-TV18 said, "In the beginning of the year, we had expected somewhere around 7.5-8% growth in cement consumption which is kind of flat right now. So that’s the reason that prices are not going up."
Ashish Guha, MD & CEO, Heidelberg Cements in an interview to CNBC-TV18 spoke about the financial performance of the company and the road ahead.
Speaking to CNBC-TV18, Ashish Guha, MD and CEO of Heidelberg Cement India said, the company plans a significant hike in prices post the monsoons.
Ashish Guha, MD of Heidelberg Cement in an interview with CNBC-TV18 said that with the onset of monsoon there has been correction in prices in various parts of the country. The company is expecting the correction to be in the range of Rs 5-10 a bag in most regions.
Talking about the hike in coal prices, Ashish Guha, managing director of Heidelberg Cement says that the company sees a rise of about 30% in the raw material prices for cement due to the hike in coal prices. “A and B grade coals have gone up by almost 150%, while the C,D,E,F grade coals have grown up by 30%,” he says.
In an interview with CNBC-TV18’s Latha Venkatesh and Gautam Broker; Ashish Guha, MD of Heidelberg spoke about the latest happenings in his company and sector.