• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset Realasset
moneycontrol.com

Home » News » Earnings » Results Boardroom

May 23, 2013, 04.05 PM | Source: CNBC-TV18

See bottomline expansion through cost cutting: Autoline Ind

M Radhakrishnan, Co-founder & MD, Autoline Industries said they aim at imrpoving their bottomline through various measures like cost cutting, innovation, debt reduction etc.

Like this story, share it with millions of investors on M3

See bottomline expansion through cost cutting: Autoline Ind

M Radhakrishnan, Co-founder & MD, Autoline Industries said they aim at imrpoving their bottomline through various measures like cost cutting, innovation, debt reduction etc.

Post Your Comments

Share Cancel

M Radhakrishnan, Co-founder & MD, Autoline Industries  said, they have taken few steps like reduction of debt, optimisation of their facilities and innovation, cost cutting, monetization of patents, to improve their bottomline.

He further told CNBC-TV18 that loss seen in standalone numbers both in Q3 and Q4 was basically due to slow down in the overall auto industry but added that on a consolidated level they saw a growth of 7.5 percent on the topline.

Below is the verbatim transcript of his interview on CNBC-TV18

Q: Could you explain the loss that we have seen in your standalone numbers. We had a loss even in Q3 as well. When could you expect a turnaround in your standalone performance?

A: The standalone performance has been little down because of overall auto industry going down. Our earnings before interest, taxes, depreciation, and amortization (EBITDA) level has come down by 2 percent due to certain receipts, which had to come, they didn’t come and we are not expecting.

The finance charges went up by almost 20 percent from Rs 30 to Rs 37 crore, which also affected the standalone.

However, on a consolidated level we have a growth of 7.5 percent on the top-line and even on quarter on quarter, corresponding quarter we have 25 percent growth on consolidated basis.

Q: Your point is taken on quarter-on-quarter net profit growth but year-on-year (Y-o-Y) it is down from Rs 16 crore to Rs 1 crore. By when do you expect to go back to the kind of profitability that you had last year?

A: We have taken some steps to improve the bottom-line. One will be reduction of debt because our interest finance charges are high because of certain investments made which have not given expected returns.

Two, is optimisation of production facilities. We have 11 manufacturing facilities - we grew from about 11 lakhs, about 15-16 years back to Rs 800 crore. One will be mega project location, where we can get return of whatever sales tax or value added tax (VAT) we pay. We have entitlement of Rs 77 crore and in the next three years we have been able to use only Rs 27 crore. So, the balance Rs 50 crore we have to use in the next three years.

Third, is innovation, cutting cost through value engineering and also productionisation or monetization of some patents.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
See bottomline expansion through cost cutting: Autoline Ind

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login