Capacity expansion to push growth 30%: HSIL

HSIL is one stock that has managed to hold its head high up above the volatile market cloud, trading up close to about 0.55% in a weak market. RB Kabra, president of HSIL joins CNBC-TV18 to talk of the way ahead for the company. Expansion plans, organic and inorganic, are in the pipeline and is expected to push up revenues 30% for the company, he says. This would translate to about 40% growth in profit before tax for the financial year, he says.

Below is the verbatim transcript. Also watch the accompanying video. Q: You have a lot of expansion plans lined up in your sanitary-ware and container glass segments. Could you tell us what FY13 growth would look like once all these expansion plans kick in?
A: We have just completed a very good year and we have a large expansion plans, organic and inorganic growth. We would be growing 30% CAGR for next 3 years in topline and 30% plus in the bottomline as well. As far as our expansion plans are concerned, in the building sector, capacity at our Bahadurgarh plant is 1.5 million pieces per annum and Bibinagar plant capacity is 1.3 million pieces per annum, totaling 2.8 million pieces per year. Expansion is going on at Bibinagar and we are adding a module of 7,000 pieces, which will be operative by September this year. So the capacity will go to 3.5 million pieces per year, and then we are expanding our Bahadurgarh plant, adding a module of 0.3 million pieces. Also read: Hold HSIL;target of Rs 180: Unicon Investment Q: You were telling us about your expansion plans. How much do you think your revenue can grow? You are currently sitting on a base of somewhere around Rs 10,000 or so in terms of a revenue figure. How much do you think you can grow this to in FY12?
A: Gross revenue this year was Rs 1100 crore and this will grow by 30%. So we should be around Rs 1500 crore by end of this financial year. Another 30% growth is projected in the next financial year as well. Q: In terms of your net profit as well, all add to about Rs 100 crore or so on a PBT level. How much do you think you can grow post the expansion plans coming on stream?
A: The PBT will grow around 40% per year because of the increased revenues and increased EBITDA growth.