Expect 15% growth when new capacities start: Carborundum

In an interview to CNBC-TV18, K Srinivasan, MD of Carborundum Universal spoke about the results and his outlook for the company."We expect the overall growth to be above 15 percent on a consolidated basis as soon as the new capacities start coming up in India", he said.Below is the verbatim transcript of K Srinivasan's interview to Reema Tendulkar & Nigel D'Souza on CNBC-TV18.Reema: A 10 percent growth is likely lower than what some people on the street were hoping for. Were there any issues which impacted the companies topline performance and what is your guidance in the same going forward?A: The standalone growth on topline was 16.3, which probably reads better simply because of the fact this 10 percent on the consolidated -- you must take into factor that the big tease of it is in Russia and there was some discontinued business as well in the other parts of the world. So, that is a reason why you saw a 10 percent of muted growth on the topline in rupee terms whereas the profits went up 21 percent at Rs 40 crore plus.Standalone growth of 16.3 is an indication that the market is picking up. The growth is going to be there and that should broadly be taken as a guidance going forward.Nigel: So you have guidance of around 15 percent on the topline you are confident about maintaining that because the consolidated told revenues are up only around 10 percent, as you said yes standalone numbers are up but consolidated revenues will grow 15 percent for this year that is my first part of the question? Also you all were guiding for some margins gains and in one of your segment that is electro mineral segment over there we did see that the margins have contracted to around 13.2 percent from around Rs 17.5 percent any particular reason for that?A: We expect the overall growth to be above 15 percent on a consolidated basis as soon as the new capacities start coming up in India -- we have been shifting the capacities out of South Africa to India and one by one, quarter-on-quarter (Q-o-Q) these capacities are coming live in India. Hopefully, that should compensate for any shortfall we will have outside.So 15 percent topline yes, on the margins, on the electro minerals, we did have a 2000 tonne loss on the production in Russia out of manufacturing issue coming out of power supplies and we hope to catch up in Q3 and Q4. It has been getting set right, this is outside our factory from the supply side and hopefully that should allow us to get the volumes back and with that the margins will come back.