In an interview with CNBC-TV18's Reema Tendulkar, RV Bubna, Chairman and Managing Director, Sharda Cropchem, discussed his company's fourth quarter earnings.
Below is the transcript of RV Bubna’s interview with Reema Tendulkar on CNBC-TV18
Q: Can you explain why your margins have fallen from 29 percent to 21 percent in this quarter, what were the key reasons for margin pressure and what will be the margins for the company in FY16?
A: The margin has been affected adversely mainly because of the euro-dollar exchange rate. As you know the quarter four is the best quarter for us and the impact of euro dollar in the fourth quarter has been very severe compared to the same fourth quarter in the year 2014.
Q: So, if we stripped off the currency impact, on a constant currency basis how were your margins in Q4, how would they compare with in Q4 of FY15?
A: Our margins would be flat or higher in the year 2015 compare to 2014 if we had the same euro-dollar rate or euro-rupee rate.
Q: So, on a constant currency basis your margins you are saying in FY15 would have been flat or slightly higher?
A: Yes.
Q: What is the outlook on margins in FY16, is there scope to improve your margins on a constant currency basis?
A: Yes, there is a scope to improve our margins; maybe it will remain at the 2014 level. So, there would be a scope to improve over the 2015 level.
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