ISMT eyes standalone margin at 18.5-19% for next year

4254 Investors following ISMT. Share this News with them.

0

Like this story, share it with millions of investors on M3

ISMT eyes standalone margin at 18.5-19% for next year

In an interview with CNBC-TV18's Latha Venkatesh and Gautam Broker, Rajiv Goel, CFO of ISMT, the company with a 'buy' rating by Sharekhan, spoke about the recent happenings in this company and the road ahead.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS ISMT has target of Rs 70: Jani See 25% revenue growth in FY12: ISMT Find out: 2 largcaps, 3 midcaps that Sharekhan is +ve on ISMT eyeing 30-35% growth in sales in FY11 ALSO READ See latest News about ISMT See previous management interviews See what other Experts & Brokerages are saying about ISMT

In an interview with CNBC-TV18's Latha Venkatesh and Gautam Broker, Rajiv Goel, CFO of ISMT , the company which got a 'buy' rating by Sharekhan, spoke about the recent happenings in this company and the road ahead.

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

Q: Is the power project coming up on schedule? Has the power production already begun or likely to begin soon?

A: Yes. The power project should be on stream by end of this quarter. All the equipments are at the site and we are at the final stages of erection. We are expecting the project to be on stream. The benefits will be available from April onwards. We expect a benefit of about Rs 35 crores to Rs 40 crores per annum.

Q: You have an advantage of in-house power coming in which will impact you in FY11. But, there is also an increase in competition for this space. What kinds of margins you will be able to keep in the forth quarter and in FY12?

A: We are looking to sustain the present margins which would be in the region of about 18.5. We will have an improvement from power side which we have not counted those margins. They will be additional margins. On the stand-alone, the margins should be about 18.5-19%. It would add a lot to the volumes during this space. From this year, volumes will grow up by about 30% and the next year, they will grow by 25%.

Q: What kind of revenues are you expecting from your Swedish acquisition? By when do you expect it to break even?

A: We had a very bad last year. Current year, we have already touched a turnover of about Rs 90 crores. We are targeting about Rs 150 crores in the current year. Now, we expect to sustain our growth there. We are rationalizing a lot so that we can reduce the cost. We have already reduced the manpower cost. We are trying to do some processes and front ending with the Indian cost rather than the Swedish cost. We are looking forward to examine and reduce the cost. It is already breaking even and should contribute the bottom-line.

Q: What kind of revenue growth are you expecting in FY11 and in FY12?

A: We should have a 30% growth in FY11. With a turnover of Rs 1,600 crores for the current year, we are targeting more than Rs 2,000 crores next year and Rs 2000-2100 crores turnover for the coming year.