In an interview to CNBC-TV18, RV Bubna, CMD, Sharda Cropchem shares his business outlook and expectations from the company going ahead.
Below is verbatim transcript of the interview:
Q: You had earlier indicated that Q4 is usually the strongest quarter for the company, so how does Q4 FY15 look?
A: It looks quite well.
Q: Any numbers that you can give us?
A: I cannot disclose numbers now.
Q: I was seeing your business model, you have got significant exports in fact 40 percent of your revenues come in from the European market and now we have seen a significant depreciation of the euro as well. Can you walk us through what the currency impact will be on the company in this quarter as well as in FY16 if the currency stays as it is?
A: The currency will have some adverse impact on this quarter but we will be able to still show good results.
Q: What will be the extent of an adverse impact that we could see on a company like yours in terms of revenues as well as margins purely because of currency?
A: I don’t have that analysis with me right now. So it is difficult to give you any figures but currency impact is affecting every business which is active in Europe and we cannot be an exception. However, we will be able to somehow compensate a little bit, not all of it by other parameters.
Q: As of December 2014, your number of registration stood at close to about 1,350, can you walk us through the registration pipeline for Q4 and going ahead?
A: Q4 just ended and we are about to prepare our balance sheet and our audit is also in progress. So I will be able to give figures only when audit is completed.
Q: You have indicated that the company is more or less managed to offset the negative impact because of currency. Typically, in Q4 you get 40 percent of your sales and profits, because of your currency will you still be able to meet this average, you think 40 percent of your full year revenues will come through in this quarter?
A: Hopefully, it will come through.
Q: What is the outlook looking for in FY16? What would be the key things to watch out for?
A: In FY16 we hope to continue to grow at an average rate of about 20-22 percent as we have done in the previous three-four years and we hope euro-dollar has almost touched its bottom. If it still goes down, we will have a marginal impact on FY16 figures.
Q: Can you give us some word on capex plans for the next year as well?
A: We have been spending about USD 12-15 million on the capex, which is on registrations every year and we hope to continue to spend the same order of magnitude in the year FY16.
Q: The cash generation for the company is quite good. What will be the total cash on the books, how much of cash generation can you manage to cumulate in FY16 and what are the plans in terms of utilisation?
A: Let the audit of FY15 be over and then we will be able to make some comment on FY16 cash generation.
Q: Will there be any change in your business model in FY16?
A: Right now we do not foresee any change in the business model in FY16.
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