Expansion drive to take bottomline up 15-20%: Aarthi Ind

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Expansion drive to take bottomline up 15-20%: Aarthi Ind

Rajendra Gogri, vice-chairman and managing director of Aarti Industries joins CNBC-TV18 to discuss the business prospects of the company and the way forward.

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Rajendra Gogri, vice-chairman and managing director of Aarti Industries joins CNBC-TV18 to discuss the business prospects of the company and the way forward. The company has big plans for expansion that is likely to drive up bottomline by 15-20% and topline by 10%, the management says.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Could you tell us more about your expansion plans? We understand a little more will be coming on stream in Q3. Could you tell us how much and how much will it add to your revenues?

A: Last year, we had done expansion in our Gajaria plant, so that volume should start picking in from third quarter. In the second quarter, however, we are targeting about 1100 tonne per month, which will go to 1400 tonne per month from third quarter onwards. We have also implemented a power plant expansion which will be commissioned in second quarter of this year.

Q: After all of this comes on stream, your power plant plus your commissioning of extra of 1400 tonne in Q3, what is this going to do to your financials?

A: We are targeting about 15-20% increase in bottomline over CY10-11 and about 10% increase in topline.

Q: And what about your margins considering that you are doing some amount of backward integration?

A: Yes, margin will also increase progressively.

Q: And what about your interest costs? What does your debt level stand at and what's the plan with regards to that?

A: Debt level was about Rs 526 crore, but we are not expecting any further increase in debt. However, the interest cost overall has increased and velocity of USD credit has died.