Nelcast eyes 25% topline growth in FY12

In an interview with CNBC-TV18, S K Sivakumarr, CFO, Nelcast says, he expects the company to post 25% top-line and 20% bottom-line growth in FY12.

For current fiscal year 2011, he expects 40% turnover growth. Below is a verbatim transcript of his interview with CNBC-TV18's Sonia Shenoy and Gautam Broker. Also watch the accompanying video. Q: There has been an unusual spike in your stock, anything that the shareholders are missing? A: No, but generally the company is doing well. The domestic demand is excellent, so that will be good. Q: What kind of order book are you sitting on currently? What are the orders in the pipeline? A: Order book position is very good for next quarter also. This year if you take, we will be ending the year with Rs 500 crore of net turnover. So, there will be about 40% growth compared to last year. Q: There have been some issues about a production stoppage of components from Japan post that earthquake and tsunami there, has that in anyway build a case for you getting more orders? A: No, nothing because of that. Q: Given that you are growing at a fast level of about 30-40% annually, if you need to expand your capacities, what kind of utilization levels are you currently operating at? A: Right now our utilisation is about 65%. Q: We are coming to the end of FY11, what kind of projections would you like to make for FY12 then? A: I would say top-line there will be about 25% growth and in the bottom-line about 20% growth. Q: Because of the way raw material costs are shaping up, do you think there would be a slippage in your margins or would you hold your margins at these 7-8% levels? A: This year it has got some impact. But anyway we have requested all our customers for price increase, I think once we get that, definitely margins will be good.