Sudhir Agarwal, chief executive officer of the company tells CNBC-TV18 that he is not worried about the weak cash flows that his balancesheet for Q2 reflects, since the company has been gaining from strength-to-strength over the past couple of quarters. In fact, he expects his company to turnover in the next two-three quarters.
Below is the edited transcript of the interview. Also watch the accompanying video
Q: You are still generating a very weak cash flows, how will you generate enough cash from the business to support the kind of investment plan given the digitization program outlined by the government?
A: We are pleased with our results for Q2 FY12 where our total revenue has grown by 27%, in absolute terms, by Rs 204 million. Our EBITDA has grown for the quarter versus last quarter by 135%, up by Rs 41 million. So I am not so worried about the future because our performance is growing from strength-to-strength, and our margins are growing continuously over last couple of quarters. So, I am not worried about that.
Q: What is the internal target though for WWIL on when you hope to break into the black, by which quarter of which financial year?
A: If you look at our figures, we have repaid a loan of roughly Rs700 million last quarter, and that would reflect into our figures for the current quarter and going forward. My guess is in next two-three quarters we should be positive. At EBITDA level, we have been positive for last six consecutive quarters.
Q: And what kind of revenue growth do you think you may finish up the year with given what you are seeing on traction?
A: We are looking at minimum 30% growth over last year for this current year.
Q: Just one final word on whether there is any plan for the rest of this year in order to trim interest costs?
A: As I told you, we have repaid a loan of Rs 700 million last quarter and we would continue to do that and that will make our balance sheet healthier as we move forward.
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