Expect 50% increase in revenues next yr: Euro Ceramics

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Euro Ceramics BSE | NSE 23/05/12 Are Mutual Funds betting on Euro Ceramics?

Euro Ceramics , a player in the ceramics and aluminium extruded sections domain, has listed at Rs 150, down 9% to its offer price of Rs 165 per share.

Director of Euro Ceramics, Paresh Shah believes that there will be a 50% increase in revenues next year. He further adds that the company is involved in two new projects - sanitary ware and calcarious tiles.

Excerpts from CNBC-TV18's exclusive interview with Paresh Shah:

 

Q: You could start by telling us what kind of expansion plans you have and once those kick in what kind of revenues would you be able to clock next year?

 

A: We are coming up with two new projects. One is the sanitary ware, where we are going to manufacture sanitary ware and that is the purpose of IPO. We will be starting the commercial production in October 2007.

 

We also have a calcareous tile project, which is totally funded by internal accruals and institutional loans, this will start in June 2007. So next year basically 10 months of calcareous tiles, which is for the first time being made in India and six months of sanitary ware.

 

Q: Once all those capacity additions come on stream, how much does it increase your revenues and profits by for the next financial year FY08?

 

A: We are looking at close to 50% increase in our revenues. This year itself we are looking at a 50% growth over '06.

 

Q: What will you clock in terms of earnings per share?

 

A: With a 50% growth in the topline, the same will be reflected in our bottomline. Also if you look at out EBITDA margins, it has been consistently improving. If you look at our September numbers our EBITDA is a very healthy 32%.

 

Q: You think you could have priced it a little expensively because it gets drubbed on day one, you stock has done about 20-25%?

 

A: Yes, I know but its just the first feeling of it, basically it's a story which is very good, the markets are good and the real estate sector is booming. So the going is good for the company, that's what I can tell you.