In an interview to CNBC-TV18, Sajjan Bhajanka, chairman, Century Plyboard shares his views on the company’s Q4 earnings.
Below is the verbatim transcript of Sajjan Bhajanka's interview with Anuj Singhal & Menaka Doshi on CNBC-TV18.
Anuj: So, your profit has gone up 63 percent and your margins have expanded by good two percentage points. What led to that and is this kind of growth sustainable?
A: Margin is improved because our final numbers are 1,565 against 1,284. So, its 22 percent up in comparison to last year.
Anuj: I was referring to the last quarter.
A: This quarter has been okay.
Anuj: Let us talk about the fourth quarter performance.
A: So, this is six percent up and the earnings before interest, taxes, depreciation and amortization (EBITDA) is 10 percent up and profit is 17 percent up.
Anuj: So, is this kind of growth sustainable in the next year?
A: If you notice during all the quarters last year, we kept on improving quarter-to-quarter.
Anuj: You delivered earnings per share (EPS) of Rs 6.7 in this financial year, the last financial year rather on a consolidated basis. What kind of number would you target for the next year?
A: Usually we are growing at a 25 percent so that is our target all the time and last many years we have maintained that. So, we will target 25 percent growth in turnover and profitability. We have taken one more policy about the dividend so one-third of our profits we have decided to distribute so according to that also we have declared final dividend of 200 percent, 75 percent inching plus 125 percent that we have already declared in the board meeting.
Menaka: Your stock is down about 4 percent right now. Have you announced a negative outlook or any negative news that might be hurting investors right now?
A: We don’t see any negative news because the numbers are good and things are like, we have achieved the targeted sales and profits and again things are on line because we have planned many more things for future.
Menaka: You are saying the outlook is bright irrespective of where the stock is right now?
A: Yes, irrespective of the stock pricing.
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