May 10, 2010, 04.01 PM IST | Source: CNBC-TV18

To raise Rs 216cr for expansion: Nakoda Textiles

In an interview with CNBC-TV18, BG Jain, Chairman and Managing Director of Nakoda Textiles Ltd, spoke about his outlook for the company and its fund raising plans post results.

To raise Rs 216cr for expansion: Nakoda Textiles
In an interview with CNBC-TV18, BG Jain, Chairman and Managing Director of Nakoda Textiles Ltd , spoke about his outlook for the company and its fund raising plans post results.

Here is a verbatim transcript of an exclusive interview with BG Jain on CNBC-TV18. Also watch the accompanying video.

Q: Can you start of by telling us how the quarter shaped up for you? You have seen a good growth on your topline and bottomline. How have sales shaped up on the domestic, export front and your various trading segments as well?

A: At Nakoda Ltd we have a happening quarter. We posted Rs 293 crore as the topline and Rs 7.4 crore as the bottomline. Our increasing topline is 23% quarter-on-quarter (QoQ) and 81% is bottomline. Last year, we had taken up backward integration, forward integration and expansion projects of Rs 333 crore which is going to be completed by August this year. So this year we will have four months of results from that expansion also. We hope to do next quarter and then thereafter even better.

Q: One concern that the markets have is that your margins have been in the range of about 4-5%, is it possible that going forward in FY11? We can potentially significantly scale it up to much higher levels of 7-10% or is it going to be in this range?

A: Today in our board meeting. We have approved our three-year plan where we will do capital expenditure of Rs 1,500 crore. After completion of that capital outlay, we are expected to join a billion dollar club. Our turnover will rise to Rs 5,000 crore after three years and immediately we have approved the expansion of Rs 234 crore whereby by 2012 we will be reaching a turnover of above Rs 2,000 crore and a bottomline of more than Rs 100 crore.

Q: Are you sufficiently funded for all these various expansion plans? Are you looking to raise any kind of funds from the market?

A: Today we have approved capital raising of Rs 216 crore, Rs 108 crore from the promoters and our strategic investors by way of issuing warrants and Rs 108 crore from QIP issue.

Q: When would you be raising this money?

A: Promoters and strategic investors by end of June and QIP by July-August.

READ MORE ON  Nakoda Textiles Ltd, BG Jain
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