SEL Mfg sees FY08 topline at Rs 380 cr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » SEL Manufacturi BSE | NSE 25/05/12 Are Mutual Funds betting on SEL Manufacturi?

SEL Manufacturing Company has started the day just above its issue price, at Rs 90.45 as good opening of markets and touched a high of Rs 93.90. It also hit a low of Rs 80 on the back of some profit booking but still managed to hold above its issue price of Rs 90 per share.

Neeraj Saluja , MD, SEL Manufacturing sees FY08 topline at Rs 380 crore and profits at Rs 37 crore. While, FY09 topline is seen at Rs 580 crore and profits at Rs 58-59 crore.

FY08 EPS is seen at Rs 23-24.

Excerpts from CNBC-TV18's exclusive interview with Neeraj Saluja:

 

Q: According to our estimates you will do about Rs 250 crore in sales or revenues at the end of this year, is that likely?

 

A: The revenues, the topline would be around Rs 380 crore consolidated for FY08 and the bottomline should be around Rs 37 crore.

 

Q: Post expansion by FY09, what do you think you will do in sales and profits?

 

A: For FY09 we should be around Rs 580 crore and we would be able to maintain 10%-11% PAT margins so the profits would be around Rs 58-59 crore. 

 

Q: Our estimates are a lot lower; could you walk us through where you expect the growth to come in the next two-four quarters?

 

A: The growth is happening in all the three segments whether it is yarn or garment or fabrics. As of now, the total topline is equally divided. 50% of the topline comes from garment and the balance is shared between yarn and fabric. So we would be maintaining the sales level as the growth is happening in all the three sectors.

 

Q: Just to clarify once again, are you saying that the EPS for the current year FY08 could then be as high as something like Rs 35-36?

 

A: EPS this year, FY08, would be Rs 23-24.