In an interview with CNBC-TV18, K Srinivasan, MD, Carborundum Universal spoke about the latest happenings in the company and the road ahead.
He said, "FY12 has begun on a high note. The order intake continues to be strong. We expect this year to be as good as last year in terms of growth. We are seeing strong growth coming back in Australia. The growth in US has picked up after some three quarters." "Both the Australian and the North American market together represents less than 15% of our consolidated revenue. We expect this to significantly grow during this year," he added. Below is the verbatim transcript of his interview with Ekta Batra and Reema Tendulkar of CNBC-TV18. Also watch the accompanying video. Q: You have seen a very strong FY11 growth can you just give us your key milestones for FY12 and what can we expect in terms of guidance? A: We closed FY11 on a high note. FY12 has also begun on a high note. The order intake continues to be strong. We expect this year to be as good as last year in terms of growth. We have lined up capex of about a Rs 150 crore on a consolidate basis. We are going ahead as schedule in executing them. In terms of market, we are seeing strong growth coming back in Australia. The growth in US has picked up after some three quarters. We expect growth trend to continue. Q: Could you give us an update on litigation with regard to Wendt India? What might be here and if it goes against you' all what could be the liability? A: We have gone to the company law board objecting to the indirect 40% acquisition of the Wendt holding by 3M. The company law board has issued an ad-interim stay against this and the case is still in court. As of now the in-principle finding of the court is that the indirect takeover is not in the interest of Wendth India and consequently it is stayed. Also Read: KEI Industries expects Rs 1750 crore turnover in FY12 Q: Have you factored in any liabilities as of now with regards to this? A: There is no liability. We feel that they are obliged to give the first right of refusal to us consequently. We are only having a chance to buyout the balance 40% from the shareholders. Q: Since you already spoke about your international sales showing some very strong growth in FY 12 what would be the contribution from exports and what is the margin profile difference in international versus domestic? A: Carborundum consolidated has 44% of the revenues coming from outside India as of last year. We expect this trend to actually go up further. This year probably 47% of the revenue would be outside India and 53% within India. Q: You spoke about the Australian markets recovering as well as the North American markets recovering in particularDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
