Aiming for 10% topline growth in FY17: Suryalakshmi Cotton Mills

Paritosh Agarwal, MD, Suryalakshmi Cotton Mills in an interview to CNBC-TV18 spoke about the first quarter numbers and the business outlook going forward.

He expects a good growth both in the topline and margins. He expects a 10 percent growth in topline for FY17.

Suryalakshmi reported a good set of numbers for the quarter ended June 2016. The net profit was up 11.7 percent at Rs 7.74 crore.

The net profit the same quarter earlier fiscal stood at Rs 6.93 crore. The total income for Q1FY17 too was up 6 percent at Rs 190.2 crore versus Rs 187.1 crore Year on Year (YoY). EBITDA too was up 10.3 percent at Rs 29 crore versus Rs 26.3 crore YoY. EBITDA margins came in at 15.2 percent versus 14.1 percent YoY.Below is the verbatim transcript of Paritosh Agarwal’s interview to Nigel D'Souza and Surabhi Upadhyay on CNBC-TV18. Surabhi: If you could tell us how things have moved for you and how realisations and pricing is looking now? A: The first quarter of this year has been on track. We are on track for the topline as well as on the bottom-line though little bit we have increased the earnings before interest, taxes, depreciation and amortisation (EBITDA) margins both in spinning and the denim divisions. We expect a better result in the second and the third quarter particularly from our spinning division. Surabhi: Have you managed to hike prices in this quarter? What have realisations look like? A: Realisations are expected to increase in the second and third quarter as the cotton prices have also increased. Now, we are fulfilling the earlier contracts but for the new contracts we will be able to increase the realisation but that effect will be visible in the second and the third quarter. Nigel: You are sounding quite optimistic about this year. Your stock is under pressure. The street expects more. Could you give us some numbers, what was your capacity utilisation in the first part of your quarter, what is it likely to ramp up to by the end of this quarter. You have said you are confident to do well in this year. What are the numbers? Revenue growth could you help us, margins what will they improve to? A: Compared to last year we expect a 10 percent growth in the top line and definitely margins will be much better in terms of the growth numbers. It would be much better than compared to the last year.