Shrenuj targets 25% CAGR in topline ahead

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Shrenuj targets 25% CAGR in topline ahead

Vishal Doshi, MD, Shrenuj & Co, in an interview with CNBC-TV18 spoke about the quarterly numbers of the company and the road ahead.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See latest News about Shrenuj and Co See previous management interviews See what other Experts & Brokerages are saying about Shrenuj and Co Shrenuj and Co BSE | NSE 31/05/12 Are Mutual Funds betting on Shrenuj and Co?

Vishal Doshi, MD, Shrenuj & Co , in an interview with CNBC-TV18 spoke about the quarterly numbers of the company and the road ahead.

He said, "We are looking at a CAGR of 25% in terms of topline and a much larger increase in terms of bottom-line going forward into this year."

"Our gross margins were down last year by almost 2%. This was due to increase in the raw material prices which has a lag effect when it comes to the finished product. Going forward as raw material prices stabilize, we should be looking at much higher gross margin and EBITDA margin numbers," he added. 

Below is the verbatim transcript of his interview with Latha Venkatesh and Gautam Broker of CNBC-TV18. Also watch the accompanying video.

Q: Can you take us through your numbers? You have had decent increase of what about a little over than 25% for the full year. Can you take us through how the Q4 performance itself was in percentage terms - revenue and bottom-line?

A: In Q4 the total sales were up by 24.75% and the total PAT was up by 21.91%. This was before a write down of Rs 4 crore. This was a previous year  expenses primarily, on account of insurance claim which is currently in a court in America which we have written off this year.

Q: How do you expect you're going to do in the current quarter to build the growth as good as you have shown in FY11?

A: We are looking at a CAGR of 25% in terms of topline and a much larger increase in terms of bottom-line going forward into this year.

Also Read: Shrenuj & Co may raise Rs 100cr via QIP

Q: And how would margins be do you think?

A: Our gross margins were down last year by almost 2%. This was due to increase in the raw material prices which has a lag effect when it comes to the finished product. Going forward as raw material prices stabilize, we should be looking at much higher gross margin and EBITDA margin numbers.

Q: What about the fund raising? We believe we had a plan to raise Rs 100 crore. When are you initiating the process to raise the money?

A: We are looking at raising the money this year provided the valuations hold up. Currently, we are discussing at board level and providing for Rs 100 crore of fund raise.

Q: You spoke about that exceptional item which you had to adjust in the fourth quarter - the court case? Will that have an impact in the coming quarter as well?

A: No. It was a one-off item. It was an insurance claim on account of jewelry theft in America which is currently in court. But, we have already provided the entire amount in the last quarter.