See FY16 margins, revenues better than last year: Pokarna

A: Basically we focus on exports and predominantly the American and the European market.

Nigel: And what is the contribution coming in from there, it is more than 50 percent a year to the United States itself, could you confirm that?

A: Yes more than 60 percent from the United States actually in one part of the business that is granite and almost 80 percent coming in quartz from United States.

Reema: With this kind of a solid start to the year, what is the kind of revenue and margins that you are hoping to achieve for FY16?

A: I can’t give you the number but definitely it will be much better than the last year because of our improved efficiencies and more market penetration we are looking at a much better numbers this year.

Reema: But is this kind of a revenue runrate sustainable, nearly Rs 100 crore on the topline and margins around the 30 percent or were there any one-offs which benefitted you in this quarter?

A: No, on the contrary it will improve because this quarter we literally had little shutdown for up-gradation of the production facility and in spite of that we have this number, so I hope that we should do better than what we did this quarter.

Nigel: With regard to your margins, they were looking very good at around close to 30 percent. Could you break that for us because you said that 60 percent is coming in from the United States, so what is the domestic margins and what is the export market margins?

A: If you look at the overall business model itself, we have almost 80 percent coming from export and these margins are consistently the same actually, there is no – only in terms of efficiency improvement, production and quality improvements have increased the numbers but more or less the margins are consistent actually.