In an interview with CNBC-TV18, RV Bubna, CMD of Sharda Cropchem said that the cmpany is comfortable with the current level of growth in margins and expects to see growth in its European business.
Sharda Cropchem reported a good set of first quarter earnings where net profit stood at Rs 41 crore against Rs 36.4 crore in the same quarter last fiscal.
In an interview with CNBC-TV18, RV Bubna, CMD of Sharda Cropchem said that the cmpany is comfortable with the current level of growth in margins and expects to see continued growth in its European business.
Below is the verbatim transcript of RV Bubna’s interview to Latha Venkatesh, Varinder Bansal & Anuj Singhal.
Anuj: We don't have your numbers. If you could give us the net profit and the income number and how have you managed compared to the last quarter?
A: Our revenue has gone up by 13.2 percent. Gross profit has gone up 26.3 percent from Rs 889 million to Rs 1,123 million. Our earnings before interest, taxes, depreciation and amortisation (EBITDA) without foreign exchange impact have increased from 18.3 percent to 22.7 percent and profit after tax (PAT) has grown up by 12.5 percent to 13.1 percent.
Latha: Can you tell us the exact profit numbers?
A: Exact profit is Rs 408 million or Rs 41 crore.
Latha: Rs 41 crore versus?
A: Rs 36.4 crore.
Latha: What is your sense about your run rate in terms of revenues, will you be able to manage Rs 112-115. How is the season looking to you?
A: The season is good and so far we have done about 15 percent more than the previous year and we hope we will be able to continue with that trend.
Latha: What about your margins, how did they do?
A: Margins have grown comfortably. They have increased from 32 percent to about 36 percent. We hope to stay in the same range of about 34-36 percent.
Anuj: What about your Latin America business, how much did you grow by there and are the currency fluctuations impacting you there. Could you give us some details on that?
A: Latin America has grown up by about 17 percent in terms of volume and 18.5 percent in terms of value.
Latha: What is the expectation, will you be able to do better in your international businesses?
A: Yes, we will be able to do better compare to previous year.
Anuj: In terms of pure geographical presence Europe of course is 52 percent. Does the mix still remain more or the same or will we see a bit of change in mix going forward? For example reduce presence in Latin America and maybe a bit of an increase in a couple of geographies like US and Europe.
A: Europe will continue to grow and Latin America is also looking good going by the first four months.
Varinder: The margins in Q4 were 29 percent; of course Q4 was exceptional quarter for you as a company and Q1 although we have seen year-on-year (Y-o-Y) increase the margins but the margin is at 21 percent. What is the sustainable margins you for the business going ahead?
A: We should be able to maintain the same level of margins that we have done in the first quarter.
Latha: So, that is 22.7?
A: Yes, it could be 22.7 or maybe 20-22.
Latha: So, 29 was an exceptional performance?
Latha: What will you probably do in terms of revenues for the full year?
A: I would say around 15 percent plus or minus.