Agro chemicals manufacturer, Chemcel Biotech plans to tap the capital market with its initial public offer. The company plans to raise Rs 24.64 crore by issuing 1.54 crore shares, priced at Rs 16 per share.

KT Vijaya Kumar, MD, Chemcel Biotech, said the company expects to double turnover by March end. “We expect a 50% and 100% jump in topline and bottomline respectively.”

Here is a verbatim transcript of the exclusive interview with KT Vijaya Kumar on CNBC-TV18. Also see the accompanying video.

Q: Could you tell us what you will deliver in terms of sales, revenues, or profits by the end of this year?

A: We are expecting to do more than Rs 50 crore by end of March. At present, we are at Rs 25 crore. So, it will be double in respect of turnover. We are expecting it to be 100% in terms of profit compared to last year, maybe around Rs 250 lakh. 

Q: What is going to cause this 50% jump in topline, and 100% jump in bottomline. Our estimates are little conservative than yours for earnings.

A: The fact is that the major season starts from this month onwards. 70% of the business is generally done from October to March. So, with the new capital infused into the system, the marketing team will gear up and naturally the business will be doubled. We are expanding to other parts of Andhra Pradesh and the rest of the states will be covered, so certainly turnover as well as the profit will be up.