Bang Overseas hopes to achieve 10% profit growth in FY11

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Bang Overseas hopes to achieve 10% profit growth in FY11

In an inetrveiw with CNBC-TV18, Brijgopal Bang, Managing Director, Bang Overseas, spoke about his outlook for the company post results.

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Bang Overseas has announced its FY10 Q4 results. It's net sales stand at Rs 39.03 crore versus Rs 39.24 crore. In an inetrveiw with CNBC-TV18, Brijgopal Bang, Managing Director, Bang Overseas, spoke about his outlook for the company post results.

Below is a verbatim transcript of the interview. Also watch the accompanying video.

Q: There has been a big operating income which has helped you all at your operating level. Could you help us understand what that is?

A: We do working for other brands as well, so it's basically from that we put the operating income. We have certain property which is on lease and other interest which we are receiving from our deposits from that point of view.

Q: What has led to the dip that you have seen on top line because both on a FY10 level and for the quarter, the top line seems to be going nowhere? Are you seeing lot of pressure on domestic sales?

A: We are just consolidating our cliental base and maybe because of that and also if you see the consolidated figure, it's almost similar which is still maintaining at the same level as 2009.

Q: What about your margins? They have been quite low this time, just about 7.6%. Is it possible to scale it up above the 10% mark in FY11?

A: We are working towards achieving them and we are hopeful that we would certainly achieve those better margins this year, looking at the overall business outlook.

Q: Can you give us the doable target on your top-line because in FY10 you have done about Rs 163 crore and in FY09 Rs 165 crore, so it hasn't really moved anywhere? What kind of a growth are you expecting if any in FY11?

A: What we are interested is increasing our bottom line so basically we are in the business model wherein we have our own brand which is fairly well now and the sales are picking up. Hopefully, we will be able to get better bottom-line this year and sales more or less, we should be able to manage about 10% growth rate from the current level.

Q: So a bottom-line at about Rs 4 crore right now. What would be a doable target for you?

A: We are targeting it to bring it up to a level of 9% to 10%. So that's basically is the target level at which we are working at the moment.

Q: And that would be in one-year?

A: That would certainly be in coming year and because hopefully we have done certain measures in which we are getting that required results.