In an interview to CNBC-TV18, Vikas Gupta, ED of PG Electroplast spoke about the latest happenings in his company and sector.
Our company is primarily into electronic manufacturing services (EMS) and a plastic moulding company, said Gupta.
He said that 40 percent of sales come from EMS activity and balance 60 percent from plastic moulding business.
"In EMS activity, we are working for companies like Lava and Intex. In plastic moulding, we are working with all the major global brands like LG, Voltas, Whirlpool and Carrier. In automotive segment, we are working as a tier two vendor for companies like Mahindra and Mahindra, Tata, Maruti, Ford and Nissan," he said.
He further said that in EMS activity, margins are around 3-4 percent whereas in plastic moulding business the EBITDA margin ranges around 8-9 percent.
Our borrowing cost has come down by 150 bps, he further mentioned.
Have planned a capex of Rs 45 crore, he added.
Looking to expand production by 50 percent and targeting topline growth of 20-25 percent, Gupta said.
According to him, EBITDA will expand by 30-35 percent and revenue will grow by 20-25 percent in FY18.
The current debt is at Rs 85-90 crore. He expects debt to remain around the current level.
Watch accompanying video for more details.
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