Jun 02, 2011, 10.34 PM | Source: CNBC-TV18
Shailendra Sancheti, Group CFO, House of Pearl in an interview with CNBC-TV18 spoke about the latest happenings in the company.
Below is the verbatim transcript of his interview with Latha Venkatesh and Gautam Broker of CNBC-TV18. Also watch the accompanying video.
Q: Can take us through what's going right? Did you win a large order? Your stock has bounded Rs 13 today.
A: This is all because of the growth we have been experiencing since last three-four years. We have been working very hard, expanding in countries with the cost competitiveness.
We are improving the margin by providing complete solution to the buyers. We have a long standing buyer loyal to us for a long time and this is how the result has been achieved.
Q: I am not taking away from that at all. Your year ending EPS has jumped from about Rs 4.50 to Rs 13. Your quarterly EPS has jumped from about less than Rs 4, Rs 3.75 to Rs 7.65. But your revenue growth for the full year and for the fourth quarter was the same - 21%. Itís a steady performance. Is there something lately that the company has achieved in terms of orders?
A: Garment is a seasonal business. We have few good months and few normal months. Especially, the third quarter and fourth quarter is very good. Itís always on the year to year basis. But overall growth was 22%. We are expecting the same to continue despite, letís say there is a downturn in the global markets like Europe and US.
Q: Do you expect to do 20-22% in revenues this year as well?
A: Our expectation is 15% to 20% in the year coming and we are on the growth part in fact.
Q: What about the operating profits? Do you expect any pressure because of higher yarn or cotton prices? Your EBITDA in Q4 if I am not wrong was down about 15% to Rs 28 crore. Do you anticipate any further pressure in this fiscal?
A: EBITDA has improved as compared to the last year from Rs 16 to Rs 27-28 crore almost which is a good increase of 72% over last year. But yes, cotton price was the biggest factor affecting the industry along with the labour cost.
We have been developing new markets for our manufacturing for outsourcing through labour and cost effective areas. This is how we have been improving. Cotton has been one single factor which is driving the cost and the profitability.
Q: Any inorganic moves are you trying to buy companies lower down the chain to ensure raw material supply? Are you looking at some companies abroad which will give you some reach or are other companies looking at you?
A: We are looking into these all areas. But, all that depends up on the situation, the markets. We have tie ups, not in terms of investment but in terms of our long term business relations which we have been doing with the supplier as well as our buyers.
Pearl Global In stock price
On May 26, 2016, Pearl Global Industries closed at Rs 237.45, up Rs 0.95, or 0.40 percent. The 52-week high of the share was Rs 269.90 and the 52-week low was Rs 184.00.
The company's trailing 12-month (TTM) EPS was at Rs 6.15 per share as per the quarter ended March 2016. The stock's price-to-earnings (P/E) ratio was 38.61. The latest book value of the company is Rs 137.23 per share. At current value, the price-to-book value of the company is 1.73.
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