Performance of domestic custom moulding business (which is 20 percent of total revenue) of Sintex would continue to show improvement on the back of orders from non-automotive sector
Despite an overall sluggish environment, plastic products manufacturer Sintex Industries is cautiously optimistic about atleast 10-12 percent topline growth in FY14.
Earlier in the day, Sintex announced an around 2 percent year-on-year decline in profit during June quarter on high interest and depreciation cost. Total income grew to Rs 1128 crore from Rs 1081 crore YoY. The company said its forex loss narrowed down to Rs 3.7 crore from Rs 29 crore YoY.
The firm's operating margins also shrunk to 14.3 percent from 16.4 percent as big ticket orders were hard to come by amid high operating cost.
“We will make a strong comeback in ensuing quarters with higher contribution from the value added product portfolio and due to overall improvement in capacity utilization,” Sunil Kanojia, president, Sintex Industries told moneycontrol.com.
He further said that Q1 performance cannot be considered a reflection or a preview to entire year’s performance.
Kanojia further said that the company is actively studying to implement 3,00,000 spindles project in Gujarat under the new textile policy and the same is likely to be ramped up to one million spindles in five years.
Problems with company’s overseas custom moulding business (which contributes around 25 percent to revenue) maycontinue due to slowdown in Europe. Performance of domestic custom moulding business (which is 20 percent of total revenue) would continue to show improvement on the back of orders from non-automotive sector.
Monolithic segment (around 20 percent contribution to revenue) may continue to remain under pressure, the firms pre-fabrication and custom moulding business will boost growth, he said.
In January-March quarter, Sintex had announced the acquisition of two bankrupt assets that are engaged in custom moulding in Germany and Poland at a consideration of Rs 170 crore.