See 6-7% topline growth for FY16: Dhanuka Agritech

New launches aided growth in the third quarter of FY16, says MK Dhanuka, MD of Dhanuka Agritech. The company reported a 15 percent revenue growth to Rs 206 crore and operationl efficiency (EBITDA) improved 27 percent to Rs 32.8 crore in the quarter ended December 31.Dhanuka expects 6-7 percent topline and 17.5 percent margin growth in FY16 on back of new launches. The company plans to launch another two new products in first quarter of FY17, which will further push growth. If the monsoons are good in FY17, then the company could achieve a growth of 20 percent, he adds. Below is the verbatim transcript of MK Dhanuka's interview with Surabhi Upadhyay and Nigel D'Souza on CNBC-TV18.Nigel: On the topline we are seeing a good growth of close to 15 percent - that's on year-on-year basis. So just focusing on the topline though the margins have improved but let's focus on the topline, Rs 200 crore is what you have done this quarter, last quarter it was around Rs 250 odd. What is your take? Going ahead what is the quarterly run rate we are likely to see in terms of revenues?A: In case of agrochemical industry, you have to see YoY basis instead of QoQ basis. So we have 15 percent growth over last year and we will close yearend by 6-7 percent growth over last year in topline.Surabhi: This time your bottomline could have been looking much better, has it not been for higher tax outgo. Your tax expense went up to around Rs 10 crore odd compared to what use to be just around Rs 2 crore last year, but how would you describe the operating environment because the finance cost has come down and that has helped the overall operational performance as well. What is your outlook as far as EBITDA margins are concerned and operational efficiencies are concerned?A: We will try to maintain EBITDA margin as to what was there last year. This quarter we have improved 244 bps in EBITDA margin and we hope that this trend will continue and by yearend we will be having around 17.5 percent EBITDA margins. Nigel: You said you are going to end the year with a topline growth close of around 6 percent. Am I right?A: Yes, topline growth will be around 6-7 percent.Nigel: For the nine months ended financial year, you have done a growth close to around 3 percent. So can I assume that the fourth quarter of the year will be far better, if I compare it on a year-on-year basis?A: Definitely. The earlier two quarters were bad and in Q2 the company was having negative growth but we have tried to improve upon in Q3 and similar performance been seen in the Q4, so yearend we hope we will be able to have 6-7 percent growth. We have a robust portfolio of products and new launches have given this growth to Dhanuka in comparison to industry peers.Surabhi: Could you tell us about any additional products that you might add in the portfolio and speciality products. You have 20 odd speciality products. How is that part of the portfolio doing in terms of growth?A: The new launches like Mortar, Sempra and Sakura have contributed to the topline as well as the bottomline and that is why we have been able to show good growth in Q3. We hope to launch another two-three 9(3) molecules in Q1 of next financial year as well as four products of 9(4). So these new molecules will further strengthen our portfolio in next year.Nigel: In terms of revenues and in terms of profit and loss account, what can these new molecules as well as these new launches add?A: New launches take time to establish at grass root level because the farmers and distributors doesn't know about the product on which crop it is to be used, which pest or diseases it will control, what is the dos. So through our network of 1,500 Dhanuka doctors, we impart training to the farmers at grass root level. So gradually the sales pick up and the products which we launched last three years and current year, now first time they have been contributing around 20 percent in the topline and we hope the share will further increase with the new launches in times to come. Nigel: Give us some guidance. How FY17 does looks. This year it is going to grow by 5-6 percent. Do you expect margins as well to stabilise at these levels? Give us a couple of numbers for FY17, some forward looking statement to all your investors?A: Two years were bad for the industry as far as monsoon is concerned but the global forecast for next year has come for La Nina instead of El Nino. La Nina means good rainfall. If rainfall remains good, we hope the company will have minimum 20 percent growth in the topline as well as the bottomline.