Ratnamani Metals current order book stands at Rs 400cr

Below is a verbatim transcript of the interview. Also watch the video.

Q: How do you hope to close FY10 and more importantly what is your outlook for FY11 considering the way raw material prices are going? Would your revenue growth compensate for the kind of possible margins slip that you are expecting?

A: We are in a spacious segment of oil and gas as well as power plants. Stainless steel mix of welded seamless as well as carbon steel for line pipe and for various project piping. The company has a unique number of segments. We are definitely very bullish on FY11—with the growth of say 15% or so. We have a good order booking, good live requirement into oil and gas, new tenders are coming.

Q: Where does your book stand currently?

A: It is at Rs 400 crores.

Q: The management had guided to revenues of closer to Rs 1,000 crores in FY10, your nine months figures are about Rs 530 crores. Will you be able to do that—the other portion, Rs 470 crores, in the last quarter?

A: We may not touch Rs 1000 crore because of various reasons—downfall little bit and raw material prices has gone down in both stainless steel as well as carbon steel. The company has not reached to what we expected.

Q: But you are to commission your 2000 ton per annum SS welded steel pipe plant by May. How much of a fillip will that give you in FY11 in terms of the topline?

A: That we have already completed. That revenue will come in this particular year, running year. At the same time we are just evaluating something more in a bigger diameter pipe. That will also aid something because we have a mobile plant. We can shift that mobile plant—all that is under live consideration.

Q: Could you quantify how much it would be? How much the fillip would be in terms of number of crores?

A: We are expecting 15% to 20% new growth because steel prices are on their way down compared to last year due raw materials. Even though we make tonnage but turnover is a little type of a problematic, so we are adding more tonnage you can say.

Q: And what would your doable target be in terms of an operating profit margin then in FY11?

A: The company has both the products of very high end application and this line pipe and other volume business. This new capacity what we have added will help will maintain our bottom line also.

Q: Can you update us on your margin picture going forward?

A: We will maintain overall margins at 20%.