See FY08 topline at Rs 25 cr: Celestial Labs

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See FY08 topline at Rs 25 cr: Celestial Labs

Aditya Narayan Singh, CEO of Celestial Labs expects FY08 topline to be Rs 25 crore and net profits to be Rs 10 crore. He expects to maintain margins at 40%.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Celestial Labs debuts with 25% premium Celestial Labs to list at around Rs 65-70: Experts Celestial Labs BSE | NSE 25/05/12 Are Mutual Funds betting on Celestial Labs?

Celestial Labs , a Hyderabad-based company in the bio-informatics and bio-technology sector, has listed with a premium of 25%, at Rs 75, against its issue price of Rs 60.

Aditya Narayan Singh , CEO of Celestial Labs , expects the FY08 topline to be Rs 25 crore and net profits to be Rs 10 crore. He expects to maintain margins at 40%.

Excerpts from CNBC-TV18's exclusive interview with Aditya Narayan Singh:

Q: What are your expectations in terms of revenues and profits in FY08?

A: In the first quarter, we have completed already Rs 5 crore, with a profit margin of Rs 2.2 crore. We are hopeful that we will be able to complete about Rs 25 crore topline.

Q: Is this for the current financial year?

A: Yes, that is right.

Q: So, in FY08, with revenues of about Rs 25 crore, what will your profits and earnings per share be?

A: Profits will be definitely about Rs 12 crore and earnings per share will go to about Rs 12.

Q: Major chunks of your exports come from the UK and the US. With the way the rupee has been moving, are you hedging at this point in time? How much of a hedged position have you taken?

A: Actually, we are trying to balance, because our 30% revenues come from UK; So, we are not very badly affected. But then, now we will try to move in terms of hedging also.

Q: Where do you see margins stabilising for yourself - at the 39% mark?

A: Definitely, we will be able to achieve about 40%.

Q: Do you have a high attrition rate at this point in time? Are you working towards reducing cost at that end and what is the strategy?

A: As far as attrition rate is concerned, we have managed very well. We have a very strong training division and we are trying to equip ourselves to develop the human resources on that front.

Q: What exactly is your key product at this point and who are the competitors in the domestic market right now?

A: We are working in a very niche segment and that is bio-informatics, where there are few companies like Strand Genomics, GVK Bio, TCS, etc. But everybody works in their different space and our focus is the new molecule development and a host of related services from the molecule development side.