Orient Press expects Rs 7-8cr net profit till Sept 2010

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Orient Press expects Rs 7-8cr net profit till Sept 2010

In an interview with CNBC-TV18, Kailash Sharma, Vice President Finance and Accounts at Orient Press spoke about his outlook for the company.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Buy Orient Ceramics: Ashish Chugh Oriental Bank can go upto Rs 280-290: Parag Doctor ALSO READ See latest News about Orient Press See previous management interviews See what other Experts & Brokerages are saying about Orient Press Orient Press BSE | NSE 29/05/12 Are Mutual Funds betting on Orient Press?

In an interview with CNBC-TV18, Kailash Sharma, Vice President Finance and Accounts at Orient Press spoke about his outlook for the company.

Here is a verbatim transcript of an exclusive interview with Kailash Sharma on CNBC-TV18. Also watch the accompanying video.

Q: What were the terms of the Board for Industrial & Financial Reconstruction (BIFR)? Are you now a profit making company?

A: Now we are a profit making company. We are expecting growth of 90% in case of the turnover and more than 300% in the profit making because the company is totally turned around. Now the company is looking at big expansions later on, but not immediately. However, we are thinking and having a lot of diversification in other products and other materials also.

Q: How much of a one time settlement had you to make with banks? How did you manage that money? Was it from internal resources?

A: That is basically a lot of contribution given by the promoters. The way the internal accruals have helped in the settlements, there is no outside fund that we have borrowed from any other institutions. So basically there are internal accruals as well as funds contributed by the promoters.

Q: Your revenue FY09 was at Rs 167 crore as of September. What do you expect to do by September 2010 and further?

A: Till September 2010 we are expecting Rs 7-8 crore net profit. Further till March 2011, we are expecting more than Rs 15-20 crore.

Q: For the coming year, do you expect that you can maintain this pace of growth in profit?

A: Definitely.

Q: Any recent expansions or new orders?

A: Yes, we have already started expansion without taking any borrowings and loans from any financial institutions on funds. We have already started expansion in printing and packaging. In diversification, in the printing division, we have notebooks and big export orders also.

Q: What is the contribution of revenues from printing and packaging?

A: Packaging margin is definitely very small, but on printing we have a good margin. Earlier the packaging had a huge burden of interest but now the company is debt-free which is contributing a lot now. Later on we are also expanding. So definitely our fixed cost has also come down and the expansion and the turnover is increased. This has helped us to achieve the target of profit out of the packaging divi