Expect to see cash profits in Q4: Nahar Spinning Mills

In an interview to CNBC-TV18, Dinesh Oswal, managing director, Nahar Spinning Mills said, he expects to see a total turn over of about Rs 1,500-1,600 crore by March 2012.

The company is hopeful of maintaining turnover in the garment section .

Below is the edited transcript of Oswal’s interview with CNBC-TV18. Also watch the accompanying video.

Q: Could you give us a sense of how the rupee depreciation has benefited you? How will it show up in your financials?

A: Rupee depreciation has helped in increasing textile exports and in the Q4 it will have a positive impact on our balance sheet.

Q: We understand that you are projecting to turn in a cash profit in Q4; will this largely be on account of fluctuation in the currency because you are primarily exporting? Could you tell us what kind of a topline are you targeting for that quarter?

A: Definitely, depreciation is going to help us. By March 2012 we are expecting a total turn over of about Rs 1,500-1,600 crore out of which Rs 1,100 crores will be export turnover.

Q: This improvement in revenues is it only on account of rupee depreciation and the conversion or has there been an improvement in the volumes as well of exports?

A: There has been improvement in the volume; the tonnage has been improved because we commissioned our one lakh spindles by December and that increase in volume is also included.

Q: This growth that you had seen in the yarn segment, 30% of it was partially offset by 25% degrowth that was seen in the garment segment, can you give us a sense of your outlook is going forward? What kind of uptick in growth you are expecting to see?

A: We will be more or less maintaining our turnover in the garment section, but more increase will be in yarn side.