Aurionpro Sols sees improved margins in coming qtrs

Aurionpro Solutions has posted a consolidated net profit of Rs 6.27 crore versus Rs 5.07 crore (QoQ) in Q1. Its consolidated net sales are at Rs 34.08 crore versus Rs 32.07 crore (QoQ).

Excerpts of CNBC-TV18's exclusive interview with Amit Sheth:

Q: What was the operating margin picture for the quarter as well?

A: We mitigated the impact of the strong rupee through better product realizations in the current quarter, as well as increase in productivity. So that's getting reflected in the margins of this quarter.

Q: What was the operating profit margin number for the quarter and how much of a hit on those margins came on account of the appreciating rupee?

A: On a net sense, we have been in a position to mitigate about 2.5% through these measures in terms of the margin impact.

Q: Can you also put in a salary hike figure in that, as to how much salary hikes accounted for on a hit on margins and what was the quantum of salary increases you took?

A: On a broader level, we have done about 15% salary hikes.

Q: Can you outline your operating profit margin because you have indeed indicated that 2.5% is what you lost. Does that mean that your operating profit margins have come in about 18% vis-à-vis 20% in the previous quarter rather?

A: I would say, 2.5% is something that we gained due to productivity.

Q: What is the outlook in terms of margins. Do you believe margins will sustain at these levels, or at this point in time you are covering yourself against the rupee well enough to not have a major impact in the following quarters?

A: In the following quarter, it would better because during this quarter, we have had a significant impact in terms of the appreciation of rupee. At least in the coming quarters, we do not foresee that impact us.

Q: How much of a forward cover have you taken at this point and at what rate?

A: We have a natural hedge to the tune of about USD 6 to 7 million because some of the acquisitions we have done, were based on an on-out kind of a model. So at this point of time we are not running any forward cover.

Q: How much of this turnover has come on account of these acquisitions that you made for this quarter?

A: This quarter nothing came from acquisitions. All of it is organic now.

Q: Can we annualize this Q1 numbers to figure out what you may do FY08. So could we expect about more than Rs 120 crore revenues and more than Rs 24 crore profit?

A: We aim to better that.