In an interview with CNBC-TV18, Satnam Arora, MD of Kohinoor Foods, which reported a mixed set of quarterly earnings, discussed the numbers and shared his outlook on the business going forward. Below is the transcript of Satnam Arora’s interview with CNBC-TV18's Nigel D'Souza and Reema Tendulkar. Nigel: We saw a bit of a drop on the top line. Could you give us some details about basmati prices, the outlook on it and do you believe that in the next quarter and in FY17 we should see an uptick over there?
A: Basmati rice exports by Kohinoor we have increased in the last quarter by 28 percent but due to the lower prices the total export has gone down by about nine percent whereas in quantity terms we have gone up by about 28.84 percent and this quarter is looking very promising because we have good order of about 50,000 tonnes in hand. But it will be delivered in the next three months.
So, this quarter is promising. That is whereas quantity is increasing. So, business overall is quite interesting and we expect this business in this quarter as well as the next season.
Reema: Do you believe that this decline in basmati prices will continue to offset the kind of volume growth that you are enjoying, the sale in quantity because that has clearly played out this quarter. So, FY17 what would be the value as well as the volume growth that you expect?
A: Let me tell you the prices of basmati rice has stabilised now and it already had the lowest possible levels which has not happened in the last 12-13 years but it has stabilised now and we don't find that our turnover will decrease in the coming month or year because we have seen the bottom.
So, now we feel that even the prices will jump a little bit whereas the customer they are very happy to buy at these levels. So, that is why quantity wise the business is growing. So, we feel good times have come again and we will be doing better in the coming months as well as next year.
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