Transformers and Rectifiers has been an outperformer in the last 12-months, the stock up over 200 percent.
Jitendra Mamtora, CMD, Transformers and Rectifiers says the healthy EBITDA profits are on the back of strong volume growth. The company aims to maintain an EBITDA margin of around 6 percent, i.e. over Rs 42 crore and a bottomline of over 2 percent in the coming fiscal, he says in an interview with CNBC-TV18’s Anuj Singhal and Ekta Batra.
With a sound order book, the power transformer manufacturer also aims at achieving more record productions than the previous year, adds Mamtora.
Below is the edited transcript of the interview:
Q: I was looking at your quarter gone by, your EBITDA resulted in a margin of 8.2 percent versus a loss in the same quarter last year, what resulted in the EBITDA profit this year and do you think it is sustainable for the rest of the year?
A: It is mainly the volume. If you look at the topline, it has gone up substantially and this EBITDA margin was from the perspective of the next few quarters; it was much better. It is not sustainable for the rest of the period but we will still maintain EBTIDA margin of 6 percent around.
Q: What would that translate into bottomline for you, because for Q1 it was almost about close to Rs 1 crore or so, if you could give us an update on outlook for the full financial year in terms of EPS growth?
A: If you look at all four quarters in this financial year, EBITDA margin of around 6 percent will amount to something like more than Rs 42 crore and bottomline after tax is maybe 2 percent or so.
Q: How is production panning out this year? There was a record production that you completed in FY14, do you think you can better that in FY15?
A: That is what we are expecting to do this year with the sound order booking we definitely will be able to achieve more than what we achieved last year.
Q: The last recorded order that we have with us is basically what you received in March 2014 from Gujarat Energy Transmission Corporation Limited (GETCO), which was worth around Rs 66 crore, since then or in FY15 how has the order book award been for Transformers and Rectifiers and what does your order book stand at?
A: April onwards, the total order book is something like Rs 160 crore and as on today, the total order book position is Rs 430 crore approximately.
Q: You had guided for Rs 700 crore of revenues for FY14, you only did about Rs 147 crore in Q1, would you still maintain the guidance or do you think there could be some cuts along the way?
A: That will be there. Whatever we are saying, more than Rs 700 crore that is what we are going to achieve and not less than that.
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