 Realisations to firm up in quarters ahead: Hyderabad IndsPublished on Mon, Jan 03, 2011 at 16:16 | Source : CNBC-TV18 Updated at Mon, Jan 03, 2011 at 16:57 3094 Investors following Hyderabad Ind. Share this News with them.
Hyderabad Industries has taken over fibre cement sheets manufacturing facility in Punjab. Manufacturing facility has capacity of 45,000 million tonne per annum. The acquisition will help the company increase its market share. In an interview with CNBC-TV18, Abhaya Shankar, Managing Director, Hyderabad Industries gave his perspective on how business has shaped up in Q3. Below is a verbatim transcript. Also watch the accompanying video. Q: Q2 was a tough one for the company. There was a drop in your realizations. You saw a decline in margins as well. How has Q3 shaped up, where do realizations stand and how do they compare on a quarter-on-quarter (QoQ) basis? A: Although I am not in a position to give you exact numbers, but you are right that Q2 we face both volume pressure and realization pressure. Q3 seems to be certainly better in terms of volumes. I think approximately about 10% growth is what we are going to probably land up with. We still don't have the exact figures yet on volume. But yes, 10% year-on-year (YoY) growth in Q3 and that sort of sets us up for the full year. We still hope to report specially on the sheeting front a 10% growth in terms of volumes. Realisations in sheeting unfortunately is still under pressure because of various factors. There have been a weather related factors and there has been the previous year monsoon failure factor which has troubled us a bit. But I hope things would firm up in the coming quarters. As far as our other green building products are concerned, I think there we are seeing some good growth. In blocks we have shown a good growth in the last quarter and I hope that we will finish almost 50-60% above previous year on a full year basis. We have done reasonably okay in Q3 and we hope to close at about 40% growth YoY on panels and then our fourth product which is a calcium silicate insulation product which we call Isle again although the growth will be almost not there, will be stagnant as compared to YoY but we have expanded our capacity at our Dharuhera plant. As we go along in the future especially next year, I think that should give us good results. Q: You took over a facility at Saidpura in Punjab, does that make a material difference to your capacity, what can you tell us in terms of your total revenue growth in the current year itself, Q1 understandably was a better quarter because there are no monsoons, you did about Rs 217 crore in terms of revenues but the next quarter it dropped all the way to Rs 148 crore. So for the full year would you be able to manage anything more than Rs 700 crore you posted last year as well on profit, if you looked at the track record, Q2 has been pretty dismal, so do you think you will be able to do that Rs 80-90 crore in terms of a bottomline in FY11? A: As we go along we feel that we would recover from the downturn in Q2, we have seen some growth in sheeting our blocks are picking up as the real estate is picking up across the country. So we do hope to be able to recover somewhat, the losses of the Q2 would be difficult to make up but yes, in terms of showing some growth over last year, in terms of revenue, more certainly yes, we would be able to show some growth (YoY) and in terms of profitability, I think the figures that you just quoted, we should land up somewhere there. Q: You would do about Rs 80-90 crore? A: Yes, that is our target. It is a little premature to say but certainly the entire company is working towards the target.
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