Rs 325-350 cr is expected turnover for FY07-08: CCL

Q: Your net profit numbers, which have come in at about Rs 10.8 crore versus Rs 13.4. Could you tell us where the quarter went soft and what is the outlook for 2008?

A: Because of the electricity problem, we have taken corrective measures. If you see the YoY, last year group turnover was Rs 306 crore. Now we did Rs 404 crore and there is a net profit of Rs 44.2 crore compared to Rs 35.6. So there is a 25% increase in net profit and you should look on YoY basis rather than QoQ basis.

Q: Same quarter last year you did an operating profit margin of 29%. Have you maintained or bettered that?

A: This year because of the electricity problem, margins have come down. But this will be corrected in next quarter.

Q: What are you forecasting for FY08 in terms of a performance on the topline and the bottomline and what kind of focus would you develop on your export sales at this juncture? Which are the kinds of products that you will be essentially focusing on?

A: Rs 325-350 crore is the expected turnover topline for 2007-2008 and bottomline will be more than Rs 50 crore. There will be an expansion of freeze-dried from 1,500 to 4,000, which is been completed by Q1, so our sales for freeze-dried will be much more. Also our expansion from 6,500 to 1,000 for sprays has already kicked in. We are expecting to do around 12,500 tonne compared to this year’s 8,600.     

Q: Could you also update us on your joint venture with Jyothi Lab? What is the status on that? How much investment are you putting into the joint venture? What kind of revenues do you expect?

A: We have not spent much on the JV for launching the local product. This is on a cost basis and we expect that this year around, we should earn at least around Rs 50 crore from local market.