In an interview to CNBC-TV18, OP Lohia, chairman and managing director of Indo Rama Synthetics India sees the demand getting better ahead. “Also, the margin will be better,” he adds.

Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompany video.

Q: We do understand that you have taken price increases of 3-4% in the last 15 days. Is this in order to protect margins or is this because of an increase in demand?

A: This is because of increase in demand and also pressure coming on account of the price increase. Rupee has depreciated because of that the price increase has happened.

Q: Can you give us a sense of how you were impacted by the rupee depreciation? We understand that almost a quarter of your revenue come in from exports, anything significant on that front?

A: On the export side, with the rupee, at 52, should go along better. Our domestic margin also should get better. The import threat is over because rupee has depreciated and Chinese yuan is still at the same rate.

Going forward, we see the demand getting better and also the margin will be better. We have seen that 2011 was a flat year and last eight-nine months were not good for textile industry.

In the last one month, demand has started getting better and export of cotton yarn also started getting better. For cotton, the expectation was of a bumper crop. But in the last few days, that has come down than what was projected. The cotton product this year will be 5-7% lower. Going forward, the demand will be better and margin also should get better in this situation.

Q: How are you doing in terms of debt and in terms of free cash flow at this point?

A: We don’t have any pressure because normally textile industry’s general view is that it is under threat or pressure. But we don’t have any pressure because our total long-term debt is Rs 300-350 crore. That is very small compared to our turnover. We don’t have any pressure on the balance sheet.