See FY09 revenue at Rs 1100 cr: Resurgere Mines

Q: Could you explain how much of your revenues this year will come from spot market sales versus long-term contracts and what are spot market rates looking like right now for ore?

A: The spot market has gone up slightly as compared to the past and it continues to be steady in the export market. In the domestic markets, the rates are pretty good at present. We are expecting a downline profit of Rs 154 crore of PAT.

Q: I was asking you about your FY09 performance because we have got penciled in that you should do a little bit over Rs 1,000 crore in revenues and above Rs 47 in Earnings Per Share (EPS). Is that the target you have?

A: Yes, we do have the target of that. We are trying to cross the topline by Rs 1,100 crore; whereas, with respect to PAT we are looking at Rs 154 crore with EBITDA margin of Rs 272 crore.

Q: Can you predict these revenues and profits with certainty, given the kind of turmoil and volatility you are seeing in the global commodity space?

A: The requirement has gone up tremendously; it had slowed down only because of certain reasons. 40% of the production was stopped and once the Olympics are over, the mills will start absorbing the material again and the prices will shoot up greatly in the last quarter of this year.

Q: What is the duration of the agreement with the mines that you currently are functioning with? 

A: It is seven years for one and ten years for the other three.