See 15-20% revenue growth for current fiscal: Jayant Agro

Jayant Agro reported a 21 percent rise in revenue to Rs 385 crore and the earnings before interest, tax, depreciation and amortization (EBITDA) grew 68 percent to Rs 32.4 crore year-on-year in the second quarter. Speaking to CNBC-TV18, Vikram Udeshi of Jayant Agro, said that the growth and margins momentum is expected to continue in the next quarter. The company has buffer castor stock which will suffice till the new crop comes in January-February.Udeshi expects revenue to be in range of 15-20 percent for FY17. Below is the verbatim transcript of Vikram Udeshi’s interview to Latha Venkatesh & Sonia Shenoy on CNBC-TV18.Sonia: Wanted to understand what the reason for the big margin up move was and at any point in this fiscal can we expect a company to report a double digit margins?A: The margins were in line of the expectations. I think the company has been performing well last one year we have seen improvement in margins. We have seen improvement in volume growth and sales turnover. We hope to continue to improve on this. Right now the margin we feel is at higher end of the spectrum, but considering the prospects subject to any volatile fluctuation in the raw material or any issue because this is agro based raw material, we hope that will sustain the margins and the volume growth in the coming quarters. Latha: How is the kharif castor seed crops and therefore how will you forecast the second half, any ideas for FY18?A: Castor, we have fortunately substitution buffer stock in carry over from the previous years so, there should not be any constraint on the availability of castor as of now. The new crop will be coming in only in January- February onwards. So, we are comfortable till the new crop arrives, I hope. Latha: The full year margins would replicate what you have shown in the first half?A: It should, I think, we are on track and we don’t see anything at this moment although things can change very quickly at least in the commodity part of the business. The chemical part of the business is more stable, so at this moment I don’t see any problem in the growth continuing. Sonia: Would you scale up your revenue guidance. This quarter you have done more than 20 percent, but for the full year you are expecting only 11 percent? Would you scale that up? A: I think last quarter we had said that we can improve it to about mid teens and now we are looking at high teens probably closer to 20 percent for the whole year. Given the demand and other factors, we should probably be looking between 15 and 20 percent for the whole year or we should be able to maintain closer to 20 percent I feel. Latha: Rs 60 crore EBITDA for second half possible?A: Yes, we are already at that in the first half, so we should be able to replicate that. Of course, this quarter is going to be off season quarter where this thing is there.Latha: Second half will be better you are saying?A: It should be in line with the first half.