WWIL might breakeven in the next two-three quarters: CEO

The Wire and Wireless India stock saw some action over the past week upon cable digitization. The company is back in news with its second quarter results. Even though WWIL posted 27% jump in revenues for Q2, PAT remains negative and margins a meager sum. Sudhir Agarwal, chief executive officer of the company tells CNBC-TV18 that he is not worried since the company is gaining from strength-to-strength over the past couple of quarters. "EBITDA has been positive for the past six quarters and this quarter, it has grown 135%,” he says. Agarwal expects his company to turnaround 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.