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Last Updated : May 03, 2011 04:20 PM IST | Source: CNBC-TV18

Everest Industries expects improvement in performance ahead

In an interview with CNBC-TV18, Manish Sanghi, MD, Everest Industries spoke about the quarterly performance of the company and the road ahead.


In an interview with CNBC-TV18, Manish Sanghi, MD, Everest Industries spoke about the quarterly performance of the company and the road ahead.


He said, "We see all the signs that the company's performance should pick up. We see a lag between good monsoon and the industry growth. Going by that correlation we should start seeing industry growth happening from April-May onwards."


Below is the verbatim transcript of his interview with Sonia Shenoy and Gautam Broker of CNBC-TV18. Also watch the accompanying video.


Q: Your quarterly performance has been a disappointment this time too. Your PAT is down; EBITDA performance is down. How many more quarters of pain do you think?


A: I think the performance should start improving. First of all we should see the result in two parts. One is the building project and the other is steel buildings. There has been a consistent improvement in the steel building segment now for three quarters.


So that's one sector which is growing, which is doing well. The building product was under pressure but towards March we started seeing signs that things are improving. The whole roofing industry frankly was flat.


Yearly growth was 0.6% only which is probably the lowest growth for many years. But we see all the signs that it should pick up. We see a lag between good monsoon and the industry growth.


Going by that correlation we should start seeing industry growth happening from April-May onwards. April has been good and we expect May- June going forward should be even better.


Q: If you can just focus on the steel building segment that you are operating in, it is 18% sequential growth for you in terms of the top line. Do you think this is going to be the main driver going ahead?  What kind of targets in terms of revenues and profits you have for this fiscal year that's FY12?


A: This is a sector which is doing well. It is doing well not just in terms of revenue but also in terms of margins. If you notice our results in the first two quarters we actually, made loss on this particular business and hence since then it has been making more money.


There is something which we put right and the environment also has supported us. We expect a growth of at least 40-50% in this business in this particular year. The growth should happen not just from topline and we are expecting the bottomline growth to be even higher.


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First Published on May 3, 2011 03:33 pm
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