FY08 turnover seen at Rs 50-60 crore: Jagjanani Textiles

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Jagjanani Textiles , or JTL has listed at Rs 22.40 on the NSE as against its issue price of Rs 25 per share.

S G Vyas, Managing Director, Jagjanani Textiles says that their FY08 turnover is seen at Rs 50-60 cr and the FY08 EPS is seen at Rs 7.

They are adding 12,000 spindles in the yarn business and 48 air jet looms for weaving are also being added.

Jagjanani Textiles' margins are at 28-30% for FY08 at gross levels.

Excerpts from CNBC-TV18's exclusive interview with SG Vyas:

 

Q: What kind of capacity are you adding on the yarn side and what would it take your revenues and profits up to next year?

 

A: We are adding about 12,000 spindles in the yarn side and are basically concentrating on adding 48 Air Jet looms for weaving.

 

Next year, our turnover should be in the range of about 50-60 crore.

 

Q: What will that mean in terms of a net profit and earnings per share for you?

 

A: The earnings per share, next year should be in the range of about Rs 7.

 

Q: What sort of margins are you currently functioning at and how much do you think they can be improved up to when all this capacity addition comes in?

 

A: This is basically a vertical integration, so the margins are bound to improve; we expect our growth margin to be in the range of about 28-30% next year.