High import bill, loans eroding gains from Re fall: Man Ind

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High import bill, loans eroding gains from Re fall: Man Ind

In an interview to CNBC-TV18, RC Mansukhani, group chairman of Man Industries spoke about the latest happenings in his company and the road ahead.

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In an interview to CNBC-TV18, RC Mansukhani, group chairman of Man Industries spoke about the latest happenings in his company and the road ahead.

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

Q: Will the rupee depreciation impact your margins in the second half of the year?

A: Since we have a lot of exports, our gain due to rupee dereciation will be neutralized by import. Rupee impact would be there because our loan is getting expensive. As regard to our trade account, the export and import both are in terms of dollar that is why effect will be less in terms of rupee depreciation but due to loans, it will be painful.

Q: Where does your correct order book stand at and what are you currently executing?

A: This year we will have around 10% growth compared to last year. Profitability is also likely to improve by 10%. The order book of Rs 1000 crore is pending and will be executed in this next three-four months.

We have bid for around Rs 4000 crore jobs and we are likely to get Rs 1000 crore jobs. An order book position of approximately six-nine months is comfortable for us.

Q: When could we hear about these Rs 4000 crore in terms of bidding?

A: Bidding process is still going on and will last for three-four months. Around Rs 1000 crore is likely to materialise in this month.

Q: Servicing your loans has become more expensive on account of the rupee depreciation. What is the debt on-books for your company? How much of it is due in the coming months?

A: We don't have a big pressure in the next three-four months. Import liabilities are hedged by our exports. We are importing other raw materials where we have to pay higher import bill. .