Bihar Tubes targets sales of 1000cr for FY11

Bihar Tubes

In an interview with CNBC-TV18, Aniq Husain, Director, Bihar Tubes, spoke about the results and his outlook for the company. The company, he believed, will maintain 9% EBITDA margins for FY11. “We have sales target of Rs 1,000 crore for FY11,” he said.

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

Q: Can you tell us what your full-year profit has been like and what have you done in terms of margins for full-year and Q4?

A: The full year profit this year has been approximately Rs 37 crore compared to Rs 2.5 crore last year, which had been an exceptional year, because of the drop in steel prices.

Q: Can you take us through this quarter’s numbers as well? How has the quarter shaped up for you in Q4?

A: For Q4, our sales have gone up by 60% and the profit after tax (PAT) margin is Rs 7.24 crore compared to the loss last year Q4.

Q: Can you give us a breakup between manufacture and trading goods as well how much has come in from manufacturing and how much has come in from trading and also how much have your EBITDA margins been?

A: Our sales for Q4 manufacturing have been Rs 185 crore and trading has been Rs 8.3 crore.

Q: Your EBITDA margins have come in at 8.9%. How much by way of a raw material cost pressure are you facing right now because last time you benefited from the lower cost of steel but this time how much of pressure are you facing and will you maintain that 9% margin?

A: This year we will be able to regain our margins.

Q: Can you tell us what you are expecting in terms of revenue growth next year because a new facility has come up in Hosur since January. So next year i.e. FY11 what kind of a revenue growth can you expect?

A: Compared to this year’s total sales, we are planning that against Rs 614 we are targeting for more than Rs 1,000 crore for the next year. This is mainly because of our South India operations, growth in Bangalore company as well as in Hosur.

Q: You plan to expand into some other markets as well, some other geographies, can you tell us about that, what are your expansion plans and which geographies are you looking at?

A: Basically we are adding value added items like tubes for bus body, for green houses and for domestic gas pipelines and also higher end of infrastructure products like tubes for air force, metro rail etc.

Q: I am also trying to understand about the export markets that you are planning to venture into, how much of a growth are you looking at in the export markets?

A: We expect a growth of about 10-15% in export market. We recently had a tube show in Düsseldorf and we got a very good response there.