Foresee 15-18% topline growth in FY12: Hyderabad Inds

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Foresee 15-18% topline growth in FY12: Hyderabad Inds

Shares of Hyderbad Industries bucked the market trend by slipping over 3% on the BSE. In an interview with CNBC-TV 18, Abhaya Shankar, managing director of Hyderabad Industries said that the company expects 15-18% topline growth in FY12 on the back of good demand.

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Market continued its uptrend on Tuesday overlooking higher-than-expected inflation for the month of May. However, shares of Hyderbad Industries bucked the market trend by slipping over 3% on the BSE. In an interview with CNBC-TV18, Abhaya Shankar, managing director of Hyderabad Industries said that the pressure on realisations in the previous quarter was due to poor rural demand. However, he added, " the company expects 15-18% topline growth in FY12 as demand is picking up.

Below is the verbatim transcript interview with Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: For the past few quarters, your company has seen some decline in realisations of the sheets business. Could you tell us where it currently stands and what is the outlook for FY12?

A: Realisations dropped last year primarily on account of depressed rural demand as monsoons were scarce. We are currently in the peak season and demand has picked up too. The entire industry is selling well and pretty much the first quarter sets the tone for the entire year. We do expect growth of about 15-18% in FY12 topline as compared to previous year. In terms of operating margins, we expect it to be in line with last year's figure of around 13%. 

Q: Your margins slipped quite a bit in FY11 to 12% versus 22%. Can you explain what sort of cost pressures you work with?

A: The root cause for slightly lower margins as compared to FY2009-10 has been that the raw material prices have shot up last year. We were unable to pass on the cost increases to customers. However, the sentiment looks positive going forward as there's better demand.