Exports to grow sizably in 2011: Nagarjuna Agrichem

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Exports to grow sizably in 2011: Nagarjuna Agrichem

Nagarjuna Agrichem has reported a sales turnover of Rs 127.48 crore and a net loss of Rs 1.06 crore for the quarter ended Dec '10. For the quarter ended Dec 2009 the sales turnover was Rs 171.41 crore and net profit was Rs 18.32 crore.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Nagarjuna Agric Dec '10 sales at Rs 127.48 crore ALSO READ See latest News about Nagarjuna Agric See previous management interviews See what other Experts & Brokerages are saying about Nagarjuna Agric

Nagarjuna Agrichem has reported a sales turnover of Rs 127.48 crore and a net loss of Rs 1.06 crore for the quarter ended Dec '10. For the quarter ended Dec 2009 the sales turnover was Rs 171.41 crore and net profit was Rs 18.32 crore.
 
In an interview with CNBC-TV18's Gautam Broker and Latha Venkatesh, Vijay Raghavan, Director of the company, gave his perspective of the third quarter performance and divulged future plans.

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

Q: Could you take us through the numbers? What was the loss in revenues due to the non operation at Srikakulam?

A: The reason for that is, we had lost over 46-47 days in the third quarter. That plant is meant for exports and hence, the exports got affected to a significant extent.

Secondly, there have been two deferments of sale in the domestic sector and we depend primarily on the paddy and transportation has got postponed by 20-25 days here.

Another reason is that, from the results itself we can see that the overall export from the quarter as well as Year to Date (YTD) has been a little lower. We have been successful in few products which have been overstocked internationally. The global markets and buyers have overstocked it in the last year.

Q: Should we anticipate that you will go back to that Rs 180-190 crore you did in Q2 as far as the current quarter is concerned. Or, do you think some lasting damage could have been done by the loss of orders especially exports?

A: Fourth quarter looks good on the back of the export orders, which have resumed. On the domestic front, the sale is only deferred not lost. Thirdly, the situation in our plant has been brought under control. We are very optimistic about the fourth quarter that it should be very good.

Q: Since domestic growth is looking a bit subdued, do you have any plans of inorganic growth going out and acquiring in international company?

A: A couple of options are on the anvil. We haven't finalized it yet. In this case, we have to be concerned about the types of equipments required and the investment required. So, we are basically considering that aspect.

Q: What could be the ticket size of the potential acquisition?

A: It's a little too early to talk about it. It depends on the type and number of molecules with which we enter the things. So, it will take a little while.

Q: Would you tell us about your full year's sales or profits?

A: In spite of the fact that we are down now, we will at least be able to clock as last year. The calendar year looks extremely good as the exports have resumed. So, the calendar year and then consequently the next financial year should be far better. Exports should be better than the highest we have ever done.

Domestic is also growing very well. We have been growing at 20%. Due to this quarter, we have come down to close to 10% growth YTD. So, overall things looks very good.