JBF Industries expects over Rs 7000cr turnover in FY12

In an interview with CNBC-TV18, Rakesh Gothi, MD, JBF Industries says, the company is quite happy with the performance. For the year, the consolidated turnover has gone up to Rs 6,471 crore from Rs 4,900 crore, an increase of 31%, he adds.

He expects over Rs 7,000 crore turnover in FY12. Below is a verbatim transcript of his interview with CNBC-TV18's Latha Venkatesh and Gautam Broker. Also watch the accompanying video. Q: Can you take us through the numbers? What are you expecting on the margins front, given that raw material cost maybe pressurising you? A: For the year under question, our consolidated turnover has gone up to Rs 6,471 crore from Rs 4,900 crore, an increase of 31%. The earnings before interest, taxes, depreciation and amortization (EBITDA) number was higher at Rs 958 crore, up from Rs 470 crore in corresponding previous period, an increase of 104%. The profit after tax also went up to Rs 546 crore from Rs 190 crore, an increase of 187%. So, by and large, we are quite happy with the performance. I glad to you inform you that board has approved dividend of 80% on every equity share. Q: No taking away from the fact that your bottom-line performance has been good and your margins have improved contrary to most companies in the industry, from 10% to about 15% for the full year operating profit margins (OPMs). How did you manage that? Did you not face increase in raw material cost because your total raw material consumption has gone up by 51%? A: What has happened is that, during the period in a question, our film division in UAE has done exceptionally well, the realisations were almost doubled that on the corresponding previous period. Also, we had an expansion of our partially oriented yarns (POY) plant. During the last quarter the numbers, the margins were higher in both the cases of polyester POY as well as polyester chips. So, these factors have contributed to higher profitability, especially the last quarter performance was much better than the previous quarter. Therefore, the profitability has looked quite good. Q: Realisations may have gone up, but is it that you an integrated player which is why raw materials are not hurting you? A: It happens by and the large in the business that we are in that as the raw material prices go up, the prices of the corresponding finished goods that is chips and POY also increase, more or less in the same frequency level. But fortunately what happened in the last quarter was that the prices of the finished goods went up much higher than what the prices of raw material. Hence, the margins were much better. Q: In Q3, you posted even better profit, you did Rs 180 crore, Q4 you have come down to Rs 164 crore. A: If you see the numbers, there was a foreign exchange loss and the loss on the derivatives front. So that has slightly brought us down in terms of numbers. But if you look at the EBITDA numbers, they have been much higher than the corresponding previous quarters. Q: Will we get such forex shocks in the current year as well, how much are you hedged? A: It all depends on the foreign exchange situation. It