Mirza International targets Rs 500cr revenue this year

In an interview with CNBC-TV18, Rashid Mirza, MD of Mirza International said, "One of our factories has started and its results have started kicking in. The new factory is almost 1.5 million pairs a year and that has added an extra Rs 100 crore on the topline in this fiscal."

The company is expecting revenues close to Rs 490-500 crore this year. For the next year it is hopeful of increasing revenues by another 15-20%.

Below is the verbatim transcript of Mirza's interview with Latha Venkatesh and Gautam Broker of CNBC-TV18. Also watch the accompanying video.

Q: The stock has been doing really well in the secondary markets for the last three or four sessions. Has there be any new order inflow from the European markets or any of the other export markets?

A: There is nothing extraordinary, it is just that one of our factories has started and the results of that factory have started kicking in. We are expecting very good results this financial closure.

Q: Can you elaborate a bit on that facility and how much it can help augment your revenues?

A: The new factory is almost 1.5 million pairs a year and that has added an extra Rs 100 crore on the topline in this fiscal.

Q: In the next year it will be producing for the full fiscal. So how much does that increase your revenues over FY11?

A: We are expecting close to Rs 490-500 crore this year and next it should be up by another 15-20%, at least 15% .

Q: What about the demand situation? Are you seeing an improvement both in terms of billing and order volumes. Now that the western economies are showing signs of stability?

A: We have a full order book, as normally we would have in this part of the year.

Q: And billing are you able to push up prices?

A: We are quite stable on prices.

Q: Are margins any better at all or where they eaten up?

A: Margins for this year are definitely far better than last year.

Q: And why?

A: We just made more money in the first three quarters than we made in the whole of last year.

Q: Any particular reason why the margins were higher? Were raw material cost lower or was it because of cost efficient?

A: Raw material cost is not lower, it's just that the design development teams are more efficient. The realization per pair was higher and the overheads were lower compare to what they were last year. In the sense that, the overheads were the same, but the sales were about 15% more than that.

Q: Your operating margins in the third quarter was 19%, would you do even better in the fourth quarter?

A: Fourth quarter should be more or less on the same lines as the third quarter.

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