Jindal Poly mulls 2-3% price hike in near future

Jindal PolyFilms is planning to hike prices by about 2-3% in the near future on the back of rising raw material prices.

Sameer Banerjee, Wholetime Director in an interview to CNBC-TV18 said, "This is a good period of the year for us, the festival season is approaching and the demand for both polyester films and BOPP films is good." The company is hopeful of maintaining it's margins to the extent of 21-22% for this financial year. The company has invested nearly Rs 450 crore in a power company. It is also looking to enter value added segments like electronics and metallic yarn. However, the company has no fund raising plans for the same. Also Read: Jindal Poly eyes Rs 3,000cr rev in '11; 20% growth in '12 Below is the edited transcript of Banerjee's interview with Gautam Broker and Latha Venkatesh of CNBC-TV18. Also watch the accompanying video. Q: Can you tell us what kind of price hikes you have taken offlate and if any are on the anvil. Petchem prices have cooled off a bit so would you expect your margins to improve in the coming quarter? A: We expect a little improvement in the margin in the current quarter. In the last two months prices have gone up by about 67%. So there could be a possiblily of further price hike. This is a good period of the year for us, the festival season is approaching and the demand for both polyester films and BOPP films is good. So, we are expecting our margins to improve further. Q: What is the quantum of price hikes you are considering at this point, 5-7% further? A: No, not that much, we may consider price hike of about 2-3% in the foreseeable future. Q: You are already operating with fairly good margins, your Q4 margins were at about 24-25%, last year you turned in a 34% EBITDA margin. What would you do now at the end of the first quarter or maybe for all of FY12? Will it be much better than 34%? A: No, it won