No plan to raise equity; topline surge by 16%: Arvind

Sanjay Lalbhai, CMD, Arvind, says that the retail market has been a difficult but the company has out performed the market. He also says that the company exports around 40 percent of the production and export segment is contributing well to the performance of the company.
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Jan 30, 2013, 04.13 PM | Source: CNBC-TV18

No plan to raise equity; topline surge by 16%: Arvind

Sanjay Lalbhai, CMD, Arvind, says that the retail market has been a difficult but the company has out performed the market. He also says that the company exports around 40 percent of the production and export segment is contributing well to the performance of the company.

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No plan to raise equity; topline surge by 16%: Arvind

Sanjay Lalbhai, CMD, Arvind, says that the retail market has been a difficult but the company has out performed the market. He also says that the company exports around 40 percent of the production and export segment is contributing well to the performance of the company.

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Sanjay Lalbhai, CMD, Arvind , says that the retail market has been a difficult but the company has out performed the market. He also says that the company exports around 40 percent of the production and export segment is contributing well to the performance of the company. The company is not facing any interest and debt issues.

"The company plans to fund its growth with internal accruals rather than raising equity," says Lakbhai.

Also read: BofA ML expects 'great rotation' to happen this year

Below is the edited transcript of his interview to CNBC-TV18.

Q: Take us through what went so good. Was it a combination of better margins as well as volume expansion?

A: Our topline has grown by 16 percent compared to last year. Our net profits are up by 44 percent and our EBITDA margins are up by 34 percent compared to the previous year. This is due to topline growth and secondly, our brands have grown by 35 percent. Our woven and denim business has turned in very good numbers so we can see the surge in our PAT numbers.

Q: There was expectation that the company would outperform this time due to festive season. After the festive season, almost a month have go by now do you see demand holding up or are there signs of dithering again, is demand getting back to being weak?

A: For brands in retail, it is been a difficult market but we are  outperforming the market. The markets are difficult and the season was not strong as expected but we reported good set of numbers. We expect to exceed the budgeted numbers set for January-March. The market is not in a strong position but we will outperform the market.

Q: What is the export position, what percentage of your revenues came from exports and how are those markets doing?

A: Our exports are doing pretty well. Around 40 percent of our production is exported. Though the markets in Europe and America are difficult but we are seeing strong demand from our customers.

The American economy is turning around so we believe that the demand will become stronger. As far as Europe is concerned, because of our competitive position improving vis-à-vis China we don't find it difficult to retain or improve our numbers with our current customers in Europe.

Q: How will your finance cost do, at the moment the numbers are flat, you are doing about Rs 80 crore per quarter in terms of interest payment. Will you do something to bring down this cost?

A: We believe the company is not facing any interest and debt issues. Our EBITDA to total debt, is around 2.5 and is constantly coming down. So, our debt remains almost constant and our EBITDA is growing by 34-40 percent. The more important aspect is to grow the topline and EBITDA.

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