Excerpts from CNBC-TV18’s exclusive interview with Tulsi Tanti:

Q: Take us through, how did the margins pan out in the fourth quarter and how do you see the picture in FY09?

A: On the annual basis, the EBITDA level margin without the exceptional cost is 14% and there is a good opportunity for the next financial year to grow that margin because this financial year, we had a little bit effect of the sudden rise of the commodities and also the rupee appreciation affect was there. So we see the next financial year and going forward also, the margin improvement chance is as a full possibility and at the same point the volume is increasing for the last year to current year. We also can give the scale of economy benefit and rupee appreciation effect, which is not that much in the current financial year and our major sales after India is coming from the US. So that will be a good support for the margin improvement.

Q: Can you give us some guidance in terms of what kind of revenue growth you can see considering that you will also enjoy a volume growth?

A: Normally, we do not give guidance. But the market is growth is nearly at 20-25% and the way we have done 70% growth for the last financial year, we will continue the high growth - double the market growth in the next financial year also. There will a full chance of the improvement of the margin. If one sees the GP level per mega watt - the earlier financial was Rs 1.55 crore and in the last financial year we have achieved Rs 1.58 crore. So in absolute terms, our per-mega watt margin has improved but in a percentage terms, it has reduced because we have increased the scope and also some changes in the product mix. So that has given real growth in margin improvement.

Q: You are looking at probably reducing your stake in RePower - any timetable scheduled for this?

A: The point is that we have purchased this company at Euro 150 and the current level is nearly Euro 230. If this continues, then there is a good opportunity to sell some of the stocks. There is no any other such plan for that at this moment.

Q: If you could also take us through - last year when this deal was done between Areva and you, Areva had a put option by which it can sell its 30% stake. We believe that it is coming to conclusion right now and they may call on their Put option. So can you clarify to us if you are going to pickup that 30% stake? If yes or no - has the line of credit been already tied up for the same?

A: First of all, as per the understanding between Areva - it is very clear as on May 24- they have a put option and they have an opportunity for the full one-year which means upto May 24 2009. So in that time, at any time, they are able to exercise their option and second thing, it is very clear with us that we have already tied up for the complete fund required for Areva at the time of the acquisitions; so there is no requirement of the arrangement of the fund.

Q: Have you had any conversations with Areva about this whether what time they may call upon you for this particular sale or given that the price is higher than that and the price at which you had stuck a deal with Areva, they may not be in a position to sell it out - is that a hard binding thing that they have to sell it to you?

A: There is a very clear agreement, so we don’t see any change on that and second thing, they have an opportunity of 365 days. I don’t think it is required any immediate rush for that as and when they decide they will come to us.

Q: You have a 31% on RePower right now and almost close to an 80% voting rights. In case of a dilution of RePower stake at any future date, what would you be comfortable with like a 10% stake sale or so? Would you sell it to such a party so that at the end of the day your voting right remains the same? How do you plan to play this?

A: Our current voting right is 87% and the shares will be available in 2009 and Areva sale will be possible in last date of 2009. So we have a total opportunity of 87%. So we are quite comfortable hence there is no concern over there if part reduction would were to happen, it is okay for us.

Q: Even though you are expecting such a huge growth of 20-25% in almost your volumes, one thing, which has always been the setback, has been the supply side concerns across your subsidiaries. Could you tell us what you have done to take care of the supply side concerns and how do you see it playing in the next 6-8 months?

A: The global supply chain is already overstretched in the global markets and there is a concern on that but in that environment, we have to see in the last financial year - our growth in mega watt terms is already 60% and we are fully integrated the production company and because of this, we are quite comfortable to continue this growth and we are increasing and expanding our supply capacity in all the component area - domestic and outside India also.

Q: Can you tell us how the retrofit programme is going through? Have you seen any impact on current shipments as of now? Are you going to take any further write-offs in Q1?

A: Whatever we have announced in January, that programme is going as per the schedule and there is no additional impact or additional increase of cost. So everything is going on quite satisfactorily.