Expect top-line to grow at 50-55% in FY12: Omkar Speciality

He sees the FY12 top-line growth “at about 50-55% and PAT levels to be above 10%.” Harlekar further confirms, “The company is likely to launch five or six new molecules during this year.”

Below is a verbatim transcript of Pravin Shivdas Harlekar’s interview with CNBC-TV18. Also watch the accompanying video.

Q: FY11 was a strong year as the profitability doubled. For FY12, can we expect profit of close to about Rs 20 crore odd?

A: Yes, we will maintain the trend that we have been following for the many years now. This year we expect to do much better than what we have performed.

Q: In terms of margin, can you talk about the key cost pressures that you face? What would your guidance be in terms of margins for FY12?

A: We have been launching new molecules that are fairly intricate in nature and they will be fetching us better margins. The products we have been manufacturing is going to improve upon our margins and PAT automatically.

Q: You did around Rs 10 crore in terms of PAT figure for FY11 on standalone basis. What could you guide in terms of FY12?

A: We expect FY12 top-line growth of about 50% to 55% and PAT levels would naturally be somewhere around 10% plus.

Q: Could you tell us how many molecules will you be launching in FY12?

A: In addition to the existing products, we will be launching another about five-six new molecules during this year.

Q: Can you expand in terms of capacity expansion as well for the company and what sort of investments could be seen in FY12?

A: We had capacity of 950 metric tonne per annum. 200 tonne has already been added which the plant that is newly commissioned at our unit number three. This capacity has already started, in addition, we will be adding around 300 metric tonne during this financial year but the contribution from that may not come for the whole year. It might happen somewhere in the second half of this year.

Q: In terms of the interest rate, what could we expect in FY12?

A: In FY12, we are aware that interest rates of banks have gone up and to that extent we will definitely face burden on financials. However, the turnover is increasing and the overall profitability margins are also increasing.

Q Are there any plans of reducing the debt?

A: The IPO fund we have got is mainly for capacity expansions; hence, we will be using only part of it for working capital. However, the majority will go into the capex for building up new capacities for producing the molecules.