ICSA expects to maintain margins at 20% this year

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ICSA expects to maintain margins at 20% this year

In an interview with CNBC-TV18, G Bala Reddy, CMD of ICSA India spoke about the company’s results and his outlook

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ICSA India has announced its results for the quarter ended June 2010. It has reported standalone net profit at Rs 27.8 crore as against Rs 27.1 crore (QoQ). The standalone net sales rose to Rs 307.2 crore from Rs 300.4 crore (QoQ).

In an interview with CNBC-TV18, G Bala Reddy, CMD of ICSA India spoke about the company's results and his outlook

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

Q: Could you take us through the margin picture? How much have you done in terms of operating margins?

A: The operating margin at EBITDA level is about 20% up this quarter. If you see Q4 of last year, it is about 19.5%. It is a slight increase and also if you see segmental business, the embedded segment slowly started moving up, which we have given guidance this current financial year 2010-11, second-half is going to be far better for the embedded segment side business.

If you see the embedded segment previous quarter 31%, now it is 33.5%. Slowly started moving up and we are expecting things will be better in the second-half of this year and it is going to be far better in the next financial year. We have an order book, which is Rs 1,910 crore as of June 30, 2010

Q: It has been a flat quarter for you in terms of topline , bottomline, QoQ growth is just about 2-2.5%, if you are saying second half is going to be better what is the kind of annual growth rates that you are forecasting in FY11?

A: FY11 it will be approximately about 15%, growth of topline as well as the bottomline will be there, which can reflect only in the second half of this financial year.

Q: Will your margins be maintained at that 20% odd?

A: Yes, we do maintain the same kind of margin. If you see the profit net levels also it is slightly slowly moving up though very negligent.