The Seshasayee Paper stock has been buzzing off late with a 40 percent gain in the last 3 months and is still going strong. In an interview with CNBC-TV18, KS Kasi Viswanathan, MD of Seshasayee Paper spoke about the latest happenings in his company and sector.
The Seshasayee Paper stock has been buzzing off late with a 40 percent gain in the last 3 months and is still going strong.
In an interview with CNBC-TV18, KS Kasi Viswanathan, MD of Seshasayee Paper spoke about the latest happenings in his company and sector.
The industry is buoyant today and the international price of paper is very steady, he said.
Pulp prices are going up, paper prices are going up, he added.
On FY19 numbers, he said, the whole thing looks quite good. We will do well, said Viswanathan.
Below is the verbatim transcript of the interview.
Sonia: Can you tell us what the industry outlook looks like for the next six-twelve months and what could the triggers be on the upside now?
A: Industry is very buoyant today and then the international price of paper is very steady and normally the international price of pulp determines the paper price invariably.
China is one of the largest producers of paper today and China is affected from the restriction on the use of paper into their country which means their production is slightly getting restricted which means again the paper which is available in the international market is going down. Therefore there is a very buoyant market despite all electronic media, mobile phone etc, the market for the paper was intact, prices are going up, pulp prices are going up, paper prices are going up, all these are seen in our share market price also.
Anuj: Is this China factor just a near-term phenomenon or is it going to last for some time?
A: I think it will last at least for another one or two years because it is so difficult for the country to move on to some other raw material base, it takes time. Therefore, I definitely see at least the year or two these effects will be there.
Sonia: What kind of growth can we expect for your own business in the second half of the year, the trend has been pretty solid but in the first half your revenues went down a tad bit, so in the second half what can we expect?
A: I don’t know if you remember, we had a problem with water and Kaveri has been a big problem. We depend on Kaveri water and there were no rains in this area. Therefore, we literally had a tough time for about a few days and I lost more than 10,000 tonne this year and they are all lost in the first six months.
Q3 of last year was the finest Q3 for the company. Therefore, we think that Q3 is going to be very tough. I am sure that I will be very close to the performance of last year despite the loss of production.
Anuj: Let us talk about this China factor impacting your number, so H1 EPS was Rs 38 for you. Last year was Rs 43.5 if we compare H1 to H1. What could FY19 look like?
A: Very difficult to put some number on that but I can only say that the whole thing looks quite good.
Anuj: If you have visibility for at least one year, because of China factor?
A: We will definitely do well.
Sonia: As far as the water availability in Tamil Nadu is concerned, have things gotten better?A: We are out of the problem. There is no issue now, we are back on track now.