Expect to clock Rs 35-40 cr cash profit in FY17: Kohinoor Foods

The company’s margins have improved on the back of increased branded sales, he added.Below is the verbatim transcript of Satnam Arora's interview with Nigel D'Souza on CNBC-TV18. Nigel: The numbers are looking good, topline growth though that is still alludes though. Could you tell us on the topline what is the breakup between exports as well as domestic sales and was there growth in any of the segments? A: Our total turnover this year is Rs 1,130 crore against Rs 1,157 crore, which is a marginal decrease. It's because of decrease in prices of rice whereas our basmati turnover has gone up by 11 percent, non-basmati turnover has gone up by 21 percent even our domestic sales have gone up by 30 percent and our total turnover is 65 percent export and 35 percent is domestic sales. Nigel: The last time you spoke about volumes rising up, so in FY17 you are expecting volumes to go up. So give us some guidance. How will your topline look in FY17 by the end of it? You are saying that in fact volumes are increasing both basmati as well as non-basmati products. Also your margins have improved substantially. How come that is happening and is that sustainable? A: Last year we had a cash flow of Rs 72 crore whereas this year we have a cash profit of Rs 41 crore, which is quite good and even at this moment we have large orders in hand and the business is expanding and the main reason for good margin is, we are all focused on Kohinoor Basmati, Kohinoor branches worldwide, US, UK, Canada even Al Dahra in Abu Dhabi, our partners, have done a wonderful job and our sales in brand are moving up. In UK, the most famous brand now is Kohinoor. So this is a reason that our focus is only on brand and brands. We have already finalised with a good fast moving consumer goods (FMCG) company in Iran for distribution of our Kohinoor rice. We are expanding markets and moreover we are doing heavy advertisements and promotions worldwide. Our main target is Kohinoor and Kohinoor this year. Nigel: You are saying that you are going to focusing on promotions - that will not pressurise your margins and also you were talking about having good amount of orders. Could you quantify that number, what exactly is that and finally tell us what your balance sheet looking like is? A: This year we have a target of 30 percent higher, already fixed for the next year with our team. In non-basmati, it is more than 100 percent of what we have already targeted. Domestic, we feel it will be improving. The team is geared up to chase the numbers to minimum 35 percent overall increases than this year. However, we also look for a good margin at least Rs 35-40 crore cash profit next year as well.