See revenues growing 10-12% in this fiscal year: Jayant Agro

Vikram Udeshi, CFO, Jayant Agro-Organics is very optimistic of growth for the company in FY17. He expects a growth in revenues to the tune of 10-12 percent and margin improvement of 100-150 basis points.  Profits, too, would see substantial growth on the back of expected turnover of Rs 1500 crore, said Udeshi in an interview to CNBC-TV18, adding that the volume growth would be around 10-15 percent, he added.

The stock is up almost 117 percent in the last three months.

The company’s efforts to reduce costs, debt and projects coming on stream led to an improvement in margins in the fourth quarter, said Udeshi. Debt reduction led to interest cost reduction contributed to higher margins. Improvement in margins is likely to sustain going forward too, said Udeshi. In Q4FY16 margins came in around 5.5 percent from 1.75 percent. For FY16, the company reported revenues of Rs 1375 crore and profits of Rs 24 crore.

As a caveat, the company's business being agro-based, volatility always remains an overhang, said Udeshi.