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Last Updated : May 09, 2016 03:59 PM IST | Source: CNBC-TV18

All segments contributed to growth in Q4: Sangam India

SN Modani, MD, Sangam India in an interview to CNBC-TV18 spoke about the company‘s fourth quarter performances and the outlook going forward. He said growth was seen across all divisions.

SN Modani, MD, Sangam India in an interview to CNBC-TV18 spoke about the company’s fourth quarter performances and the outlook going forward.
He said growth was seen across all divisions.

The Group is the largest producer of PV dyed yarn in Asia at single location. The Group is a forerunner in manufacturing ready to stitch fabric with the annual capacity to produce 30 million meters of fabric and 40 million meters of denim.

Below is the verbatim transcript of SN Modani’s interview with Surabhi Upadhyay and Nigel D’Souza on CNBC-TV18.

Surabhi: If you could start by giving us some of the other details that have come in? The profit has jumped over 70 percent odd, there is a decent topline growth, if you could just break this down, tell us how your volumes have done and take us through the different business lines?

A: Sangam India the turnover of Rs 1,511 crore and we have growth in all the segments like polyester viscose, dyed yarn, denim as well and in the garment division seamless that we have started so put together growth has taken place. Apart from that we have increased our exports by 23 percent and which has crossed Rs 406 crore and that is 27 percent of our total sale. Especially in denim business, we have increased our exports by 167 percent. Our focus on denim, as well as the yarns and the garments.

Nigel: Could you give us a sense, you are saying that your exports are around 27-30 percent approximately in this last fiscal year, what exactly caused this compression on margins and going ahead as well could you give us some outlook? How much do you expect exports to contribute to your total revenues and give us a breakup, domestic margins and export margins?

A: The margins are because when the prices were falling down for the raw materials, the stock losses etc., despite that the sales realisations is less by 8-9 percent but our margins are maintained because that little bit adjustment because of the prices when it is coming down. When the prices are going up, there are better margins because whatever we are giving more realisation in all these things.

Surabhi: In January you had actually told us that you expected a margin expansion of almost 200 basis points. So, what is a sustainable margin level for the company for this financial year, FY17 because from 16 percent you have come down to 14 percent and that seems to be worrying the street, so, what is a sustainable margin performance?

A: The margins we were expecting that the garments business growth will take place. So, Rs 18 crore this year we had growth for garment because we are settling this for the new business Sangam India B2C. It takes a little bit of time but we are sure that margins will be up in times to come as the sales and everything will pick up for this division as well. Secondly because you see when the prices of the raw material comes down, it also gives some impact on that but overall if you see the performance it will be better. It is not which is on negative side.

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First Published on May 9, 2016 03:59 pm
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