Seeing better realisations in current quarter: Gokaldas Exports

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Seeing better realisations in current quarter: Gokaldas Exports

In an interview with CNBC-TV18, Rajendra Hinduja, MD, Gokaldas Exports, about the latest happenings in his company and sector.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Gokaldas Export See previous management interviews See what other Experts & Brokerages are saying about Gokaldas Export Gokaldas Export BSE | NSE 29/05/12 Are Mutual Funds betting on Gokaldas Export?

In an interview with CNBC-TV18, Rajendra Hinduja, MD, Gokaldas Exports , about the latest happenings in his company and sector.

Below is a verbatim transcript of his interview with CNBC-TV18's Latha Venkatesh and Gautam Broker. Also watch the accompanying videos.

Q: Your company has reported losses for the past four-five quarters. Are you seeing any improvement in the situation in the current quarter, in terms of lower cotton costs or higher prices? What are the impacts you are seeing this quarter?

A: Yes, we have been able to get better prices and better realisations. I can't quantify the exact performance improvement, but there is definitely an improvement from the previous quarters.

Q: Has it also meant a larger order book for you?

A: Better order book at a higher price compared to before.

Q: Are you saying it was only an improvement in realisations, not in volume?

A: Not volume, I would say realisation.

Q: In that case, how did the volumes performed?

A: Volume has grown. At an average, we normally do roughly Rs 275 crore per quarter to Rs 300 crore. The previous two quarters we did roughly Rs 260-270 crore. This year we will have a small improvement in the volumes, but our main focus was to get a better pricing from our buyers because that's where the profitability depended upon. We have managed to get better prices. Therefore, I am saying that the performance in terms of better realisation is there in this quarter.

Q: Does it imply that this time around this quarter you would have better margins because you have been able to get better prices?

A: It is little too early to say. As you rightly said, cotton prices have only decreased a little bit when compared to the previous quarter. But not withstanding that, we had to tell our buyers and our importers on the other side that the cotton prices are main problem and therefore they gave better prices than before.

Q: If there is any improvement or expectation of any improvement, could quantify for us what is the quantum likely to be? Is it only marginal improvement or you can expect more than a percentage point?

A: I would not like to comment that right now on air. But I am optimistic.

Q: Let me just turn the question, after four quarters of losses, will the current quarter at least be one where you post some profit?

A: I again would violate some terms and as I said I am optimistic.

Q: Can you detail what has changed with Blackstone taking over the company in right earnest? What else has changed?

A: Let me clarify. Gautam Chakraborty who is going to be the CEO from April has been working in our company since last two-and-a-half years. We have been training him, guiding him as to how whole business has worked and he has travelled extensively to meet our customers, got a good grip over the subject now in terms of sales as well as production and manufacturing activities. Therefore, it won't that a new person adjusting on from April 1st but its an old person who has been in the company from two-and-a-half years. That was the agreed terms when we sold a majority stake to Blackstone in 2007. That's exactly followed now and we are confident that he is fit enough and able enough to be a CEO.