In an interview to CNBC-TV18, SK Sivakumar, chief financial officer of Nelcast says, the company’s order book position is good. “We will register about 25% growth in sales in the current year,” he adds.

Below is the edited transcript of his interview with CNBC-TV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video.

Q: We understand you have some diversification plans, basically developing castings for off-road vehicles. What potential do you see in that? What sort of plans have you outlined for FY13?

A: We are only adding another line of business— off-road vehicles. The vehicles used in the mining and earthmoving equipment will be added in this business. Right now, we are just in the development stage. The bulk supply will start from next year onwards. So, there will additional revenue to the company. The revenue will be about 5%, maximum it will go up to 10%, from this new segment.

Q: What would the margins of this new line of business be for off-road vehicles?

A: It will be similar to the current CV segment and tractor segment.

Q: Can you take us through the rational for this diversification? How much do you expect in terms of revenue and profitability going forward or a percentage of revenue?

A: We are just at the development stage. So, at this moment, I will not be able to comment about that because still you have start the bulk supply then only we will be able to tell about the revenue figure and profitability. I think this is not the right time to comment about that. But this will be a new additional line of business for us. It will fit into the existing line.

Q: If the production for this is already coming in from your existing capacity, you are not adding any additional capacity. Would it be similar to cannibalising that there will not be incremental revenue on account of this diversification, only a part of your revenue, which you use to get from CVs, will now get diverted to this?

A: I think our existing capacity will take care of this additional requirement also. We have sufficient capacity to cater to this line of business. We don’t require any major or additional capacity for this. We just have to add some balance in equipment. otherwise the current setup will take care of this requirement also.

Q: What does your current order book position stand at for the remaining business? How exactly are you placed in terms of revenues there?

A: We will register about 25% growth in sales in the current year. Our order book position is good and we supply to CV segment and tractor segment. We don’t see any slowdown in our business.

Q: In the quarter gone, we have seen interest cost come down quite significantly, about 71%. Have you pared down your debt? What is the plan with respect to that?

A: Last year, when we got huge profit on sale of shares on our Nelcast Energy Corporation, we repaid all the debt. Right now, the debt level is very low. That’s why interest cost is also low. I think we are financially very strong as of now. That’s why our interest cost is very less.