Mayur Uniquoters expects its exports to double over the next 3-4 years, Suresh Kumar Poddar, CMD and CEO of the company said in an interview to CNBC-TV18.
He said his company is aiming for a pre-tax profit margin of 18-20 percent and a post tax margin of 11 percent.
Poddar said the footwear business contributed 46 percent to total revenues and the automotive business 38 percent.
Below is the transcript of Suresh Kumar Poddar’s interview with Sumaira Abidi and Reema Tendulkar on CNBC-TV18.
Sumaira: One of the factors that Macquarie mentions in their report is the kind of growth that you can expect from your exports. Can you tell us how much exports currently contribute to your revenue and what are the key geographies or clients that you could be targeting over there for the next three years?
A: Our export growth this year will be between 20 percent and 22 percent and mainly we are exporting to automotive original equipment manufacturer (OEM) companies in America like Ford and Chrysler and there we will have about 15-16 percent growth this year. Then general export to all other parts of the world like Europe, UK, African countries, Middle-East, Gulf, European countries, there our growth will be more than 40 percent this year.
Next three years also we expect to grow fast in exports segment. I expect to grow 100 percent between next 3 and 4 years in exports.
Although, our presence was there in general exports, we were not very keen. Now, from last six months to one year, we have appointed three-four different distributors, agents to all parts of the world and we are getting a very good result. We hope that we should able to have at least 20 percent growth in the next four years time in exports.
Reema: And you also exports to double in three to four years. Could you tell us what the realisations are for your exports business vis-à-vis the domestic business or just generally if you could help us with your margins. We have your consolidated margins which in the last quarter was around 20 percent. Can you tell us the earnings before interest, taxes, depreciation and amortization (EBITDA) margins for the domestic business as well as the EBITDA margins for export business?
A: You can say export maybe 10-15 percent more than what we earn in domestic. Export margins are better.
Reema: So, overall with exports contributing more and more with the kind of growth that you are expecting, what could be your average margins, sustainable margins in FY16 and FY17?
A: We should able to sustain the margin if everything goes the way we are planning. I do not see there should be any problem.
For complete interview, watch accompanying video...
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