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Jun 02, 2011, 10.34 PM IST
In an interview with CNBC-TV18, Vivek Talwar, MD, Nitco Tiles said real estate business may add top-line of about Rs 70-80 crore this year.
He further said the industry is growing at 25%. ďWe hope to beat industry numbers as we always have,Ē he added.
Below is a transcript of his interview with CNBC-TV18's Latha Venkatesh and Gautam Broker. Also watch the accompanying video.
Q: Any new orders that you have won? What's keeping the stock markets so excited about your stock?
A: No, I donít think there is anything substantially different that has happened. The business is doing well, itís on the move and we have seen growth quarter-on-quarter. I think this year is going to be more like a consolidation phase for us. Next year onwards, we should be at different level.
Q: What about the real estate side of the business? We understand a project in Thane is nearly complete and 20% of the area is already sold when we last checked. Has there been any improvement? Are you expecting more cash flow revenue from that side of the business?
A: We have now more or less tied up almost 50% of the project and it is going quite well. In the next couple of months, we hope to tie up the entire project because we made a very high quality building which is LEED (Leadership in Energy and Environmental Design) certified and hope to get gold rating. That shouldnít be a problem. Then we are going to start a second building in Thane. We are also looking forward to start a large project in Kanjurmarg.
Q: How much does the real estate side contribute in FY12, roughly if there is estimation?
A: I donít know. But maybe if we are able to sell the entire building, as I am hoping to, we should be able to add top-line of about Rs 70-80 crore this year.
Q: Your quarterly sales were about Rs 191 crore in the fourth quarter. Is that the pro rata performance that we should expect in the coming quarters? I guess yours is seasonal, what would an average growth in FY12 be?
A: No, itís not seasonal. In fact itís consistent. We donít have any particular season where people buy tiles or marble or any of our other products. Itís through. Maybe we will have certain periods where during Diwali times somebody is doing a little more work. But by and large itís quite consistent.
Q: What kind of a quarterly number or annual number can we work with?
A: I canít give forward number. But the industry is growing at 25%. We hope to beat industry numbers as we always have.
Q: What about the export side of the business?
A: Export is not substantial. Little we are taking part in international exhibitions and we hope to build certain amount of consistent exports.
Q: So, this Rs 70-80 crore that you are speaking in terms of returns from the real estate business, this would be the first time you would be taking those revenues into the P&L?
A: Thatís right.
Q: And that would be FY12 in all probably?
A: Thatís right.
Q: What could one look forward to therefore in FY13, since you have other projects coming up at Kanjurmarg as you pointed out?
A: More than this. I hope it should be much more than this.
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