JBF Industries eyes topline growth of 15% ahead

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JBF Industries eyes topline growth of 15% ahead

Rakesh Gothi, managing director, JBF Industries in an interview to CNBC-TV18 said, the company could operate at higher production levels due to debottlenecking done last year. It is also expanding its UAE plant in the film line. With all this, the top line is expected to be much better than last year.

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JBF Industries targets topline growth of 15% going forward.

Rakesh Gothi, managing director, JBF Industries in an interview to CNBC-TV18 said, the company could operate at higher production levels due to debottlenecking done last year. It is also expanding its UAE plant in the film line. With all this, the top line is expected to be much better than last year.

"I expect the topline to go up by at least 15% over Rs 6,500 crore registered last year," he added.

However, its margins would be under pressure because of volatility in raw materials prices in the world markets.

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

Q: In Q1 as well we saw your margins tempering. They fell to about close to 100 basis points. Are you expecting further weakness at an operating level?

A: The productivity within the company continues to be strong. We should be getting higher production levels following the debottlenecking done last year. We will also be expanding our UAE plant in the film line. Considering all these aspects, the top line should be much better than last year.

I expect the topline to go up by at least 15% over Rs 6,500 crore registered last year. However margins would be under pressure because of volatility in world markets especially in terms of raw materials. We buy raw materials at a certain price sell finished goods at a different price due to volatility

Q: What would the operating margins be?

A: They would definitely be in the range of 90-95%.

Q: There are new plants opening up in Belgium and Mangalore, what will be the capacity addition?

A: We would be setting up a plant on a core location basis along with British Petroleum (BP) in Belgium. That would be a 390,000 metric tonne plant which would be located next to the PTA plant of BP. It should add sufficiently to our turnover.

The other plant that we are contemplating is the PTA plant which is our raw material. We now consume almost one million tonne of PTA. We have decided to get into a backward integration of setting up this 1.12 million tonne plant at Mangalore. We roughly invest Rs 3,500 crore for setting it up.