AMD Industries targets Rs 150cr turnover in FY11

In an interview with CNBC-TV18, Ashok Gupta, CMD, AMD Industries, spoke about the results and his outlook for the company.

Below is a verbatim transcript of his interview with CNBC-TV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video. Q: Can you just take us through the loss, which the company has made, it seems like there is a lot of pressure on the operating level, where margins have slipped at around 11% versus 23%, despite your revenue growth which has been quite strong of around 42%? Can you just take us through the highlights and the cost pressures you all have faced? A: AMD Metplast was the old name and now the new name is AMD Industries Limited.. Secondly, because of the huge fluctuation in the commodity price, that has made the total impact on our costing. Our annual contract was upto December 2010, though we have increase in sales, but the margin of profit has reduced because of that reason. Q: The other thing, which has hurt you all, has been the interest expense because that has risen above 51%, what is the debt of the company currently stand at? Is this interest cost going to continue to hurt you all? A: Basically, if you see the interest cost has been increased because of the way we are going for capex investment and all that money is already been paid in advance to bank borrowing and all. Secondly, also because of the coming season we also buy the material and keep it in stock so as it becomes usable and functional during 2011, so that also sometime the interest cost increases. Q: Can you just give us a quick update on what you possibly could close the year by? Our past interviews with you indicate around Rs 190-200 crore which seems a bit aggressive right now? A: By this financial year, 2011, we will be earning about Rs 150 crore turnover. You must know that the Rs 150 crore turnover includes also the job work and the job work is always like, we don