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May 09, 2011, 03.44 PM IST
In an interview with CNBC-TV18, Paritosh Agarwal, MD, Suryalakshmi Cotton Mills spoke about the company's quarterly numbers, its expansion plans and the road ahead.
He said, "This year we are planning to have another expansion by almost seven units in Hyderabad with a capacity of 25,000 spindles. We are also setting up our captive power plant at our denim plant in Nagpur."
Below is the verbatim transcript of his interview with Reema Tendulkar and Ekta Batra of CNBC-TV18. Also watch the accompanying video.
Q: It turned out to be a very strong quarter for you all and even on a year on year basis where your sales have grown up by close to about 50% odd, how can you improve your growth further in FY12 now?
A: We had done expansion of our spinning division in the third quarter of the last year and which have resulted in strong numbers income in this last quarter. This year we are planning to have another expansion by almost seven units in Hyderabad with a capacity of 25,000 spindles. We are also setting up our captive power plant at our denim plant in Nagpur.
Q: Can you just give us an update on your margins because we understand that there was an increase in cotton prices, so how exactly have you managed to maintain or rather improve your margins to 16% odd for the quarter?
A: There are couple of reasons, one is due to the increase in utilization levels, second is better realizations due to better demand in both domestic and exports markets and also better cost control measures.
Q: What is your expectation going forward in terms of a margin trajectory for FY12?
A: We expect the margins to be maintained in our denim division particularly, because cotton prices have softened little bit and also we have secured good orders.
Q: You spoke about an expansion, which will come into play in FY12, any kind of fund raising that you all will undertake in the coming year?
A: Mostly it would be from our internal accruals and the debts.
Q: How much would your debt component be because even in Q4 there has been a pretty substantial jump in your interest cost?
A: That is predominant because of the working capital demand, due to increase in the cotton prices. So that is because of the demand for the working capital has gone up.
Q: We figure that you are going to set up a thermal power plant, can you give us an update on what plans you have in FY12 and what short of investments we could see on that front?
A: In FY12, we expect to commission our thermal plant by last quarter of this year. We have already tied-up for the debt side and balance should be formed internal accruals and promoters.
May 21 2013, 13:56
- in Results Boardroom
May 21 2013, 11:05
- in MARKET OUTLOOK