Expect 20-25% topline growth in FY16: Gayatri Projects

In an interview to CNBC-TV18, Sandeep Reddy, MD of Gayatri Projects spoke about the latest happenings in his company and sector.Below is the verbatim transcript of Sandeep Reddy’s interview with Nigel D'Souza on CNBC-TV18.Q: The quarter looked quite good on the whole. If I just take a look at your topline there was some growth, margins stable. Bottomline expansion as well is what we saw there. Your finance cost has come down so could you tell us first whether these numbers are sustainable and also what is your current debt position?A: Current net debt position is around Rs 1,500 crore. We are going to sustain debt in the same level for even trying to reduce it over the period.Q: Are you looking to reduce it to what levels and how will you do that?A: From the future cash flows as you know that we have a good order book now of nearly Rs 10,000 crore as of now. We have one in the last quarter itself nearly Rs 4,400 crore of new orders. From next year onwards we are going to have growth of at least 20-25 percent on the topline and the margins are going to be at the same level. So, we will have substantial cash inflows which we feel that we can reduce the cash to the company.Q: What level I just missed that number. It is around Rs 1,500 crore you are looking to bring it to?A: We will try to bring it down to Rs 1,000 crore level.Q: That will be why when in the next couple of years?A: In next couple of years.Q: Give us some guidance about the second half?A: Second half also we will be on line with the growth, whole year we are looking at around Rs 2,000 crore of topline.Q: That would be a growth of what percentage on a year-on-year (Y-o-Y) basis?A: 20 percent Y-o-Y compared to last year.Q: Give us the target for FY18, what exactly will your topline look like because you are talking about 20 percent growth on year-to-year basis?A: We should look about Rs 3,500 crore in the FY18.