Revenue may jump 30% to Rs 425cr this year: Gulshan Poly

A: We are looking at full year sales of Rs 425 crore and profit after tax of Rs 30 crore.

Reema: You said Rs 425 crore. Is that for FY16 or FY15?

A: FY15.

Reema: How is the outlook for next year?

A: Next year will be Rs 475 crore.

Reema: Your EBITDA margins were at 13-13.5 percent in FY15. Can we expect an improvement in your margins?

A: Margin for this year will remain same – 13.5-14 percent.

Sumaira: Your finance costs have been steadily coming down. Can you give us a sense of what is the kind of debt that you have and whether you have any plans to pare this down further?

A: We have long-term debt of Rs 46 crore in terms of external commercial borrowing (ECB) – that’s why the finance cost is down and working capital utilisation is low. It’s a cash rich company.

Reema: In FY14, your revenues were about Rs 325 crore. You said it would rise to about Rs 425 crore in FY15, or 30 percent higher. But for FY16, growth will be only 11-12 percent higher to Rs 475 crore. What explains the 30 percent jump in revenue this year and why will growth moderate next year?

A: We have got an export order in the current year for two on-site PCC plants in Bangladesh. This is one-time turnover of Rs 30 crore, which won’t be there next year.