Expect Rs 625cr revenue in FY12: Insecticides India

The current long-term debt of the company stands at around Rs 13 crore.

The company witnessed a growth of 26% in the first half of FY11. For FY12, it is expecting to fetch revenues worth Rs 625 crore and Rs 45 crore of profit.

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

Q: What the gross debt on the book? Do you have any plans to repay this debt as interest cost is piling up and that will put pressure on your P&L?

A: At present we have long-term debt of around Rs 13 crore. Our working capital limits are Rs 60 crore, there are no more debts. We are paying interest at the rate of around 12% per annum.

Q: You plan to incur capex of between Rs 60-70 crore over the next two years. How are you going to fund this and any finalisation over the PE route?

A: Yes we are looking at the PE route, things are going on but we have not finalised anything yet.

Q: How much would you be looking to raise?

A: We are looking to raise capex of Rs 60—Rs 70 crore through PE.

Q: You have capital expansion plans which are coming up in the next two years how soon will you be looking to complete the deal with any of these PE Players?

A: The deals are at the closing stages, we are expecting to do it within a month or two.

Q: Given that you have these capital expansion plans which are coming up in the next two years how soon will you be looking to complete the deal with any of these PE Players?

A: The deals are at the closing stages, we are expecting to do it within a month or two.

Q: When you acquired MONOCIL this year, you targeted a growth of about 10% in sales. Is that the trajectory that you have or are you looking at revising that?

A: At present our turnover is around Rs 35 crore from MONOCIL. We expect a turnover of around Rs 625 crore at the end of FY12.

Q: You have seen a growth of 26% in the first half of FY11. Tell us what your FY12 guidance would be on the revenue and profitability?

A: Revenue is will be around Rs 625 crore. We are expecting around Rs 45 crore of profit.

Q: You are looking at setting up a new plant in Rajasthan. Could on what capacity you will be looking at and what it would scale it up to?

A: We are setting up a big R&D unit from granule plant. It would be from the land we had already acquired and R&D is the main purpose.

Q: What would your total capacity stand at? You expected about Rs 625 crore of revenues in FY12. In FY13 what would the revenue stand at?

A: We are planning for Rs 850 crore in FY13. And as far as technical plant capacity is concerned, it will be 5 times of the distilled capacity. Formulation capacities will grow by more than 30%.