See bottomline around Rs 23-25cr this yr: Bhagwati Banquets

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See bottomline around Rs 23-25cr this yr: Bhagwati Banquets

In an interview with CNBC-TV18, Narendra Somani, CMD, Bhagwati Banquets and Hotels, spoke about the results and his outlook for the company.

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RELATED NEWS Bhagwati Banquets and Hotels reports Rs 23.75 crore turnover for quarter ended Jun 2010 ALSO READ See latest News about Bhagwati Banque See previous management interviews See what other Experts & Brokerages are saying about Bhagwati Banque Bhagwati Banque BSE | NSE 31/05/12 Are Mutual Funds betting on Bhagwati Banque?

Bhagwati Banquets and Hotels has reported a sales turnover of Rs 23.75 crore and a net profit of Rs 3.41 crore for the quarter ended June 2010.
 
For the quarter ended Jun 2009 the sales turnover was Rs 15.60 crore and net profit was Rs 1.73 crore.

In an interview with CNBC-TV18, Narendra Somani, CMD, Bhagwati Banquets and Hotels, spoke about the results and his outlook for the company.

Here is a verbatim transcript of the exclusive interview with Narendra Somani on CNBC-TV18. Also watch the accompanying video.

Q: Just take us through how the numbers have looked this time around? It's been a really good jump on your bottom-line, what has contributed to this?

A: Basically, it is the growth from the present business only, it is not from the expansion. In next month, our Surat project is also going to start. You will see a huge expansion coming in the next month, so the income for the coming year, for 2010-11, it will cross nearby Rs 150 crore.

Q: Your other income figure too has gone up quite a bit this time around. Tell us exactly about this expansion project and when it comes on stream and how much would it contribute in terms of the FY11 growth that you are expecting?

A: Just now I told you that it will be up to Rs 150 crore. In the first quarter only, you see the growth is already more than 20% from the existing business. And our Surat project is going to start in the first week of the September next month. So the six month business will be joined with this year in this business and it will go across to Rs 140 crore to Rs 150 crore with a bottom-line of nearby Rs 23 crore to Rs 25 crore.

Q: When we had spoken to you sometime back, you said you were planning to raise some money, about Rs 150 crore to Rs 200 crore which could be via a private placement. Has anything been finalized on that front?

A: No. In the next month, we will be having again a board meeting before our AGM (Annual General Meeting). In that board meeting, we may decide something. We are going on an expansion, but the land we have not finalized yet. We approached from mining company. I think international bonds, private equity and we have a still bank debt limit also. So we have not finalized when we are going. Till next month, we may finalize it.

Q: You all also have some very aggressive capital expansion plans. What is it that you are expecting in margins, for 2010-11 and thereafter even in 2011-12?

A: See 2011-12 our Surat project completely will be starting. In this year, it will be in six months operation and in the next year it will be 100% complete operational. In that year, we are expecting more than Rs 100 crore turnover from that Surat property only. And again in that model we have a club model also. In that club model, we are having a very good membership. We have started a membership amount and we are getting very good response from members and that membership income will boost our top line.

Q: So the Rs 400 crore turnover that you had estimated for FY12, that includes the Rs 150 crore that you are going to get from the Surat project or is it incremental?

A: Yes, it includes that Rs 100 crore.