In an interview to CNBC-TV18, VD Nanavaty, Senior VP-Finance & CFO of GSFC spoke about the results and his outlook for the company.
Nanavaty further said that volume has been better than last year. However, expect benefit of caprolactam price hike to come in going forward, he added.
Expect EBITDA margin to improve going forward, he said.
Below is the verbatim transcript of VD Nanavaty’s interview to Anuj Singhal, Latha Venkatesh & Sonia Shenoy.
Anuj: A word on revenue which was down 9 percent?
A: Yes, it mainly came from fertiliser because as the subsidy has been down and the maximum retail price (MRP) has also been down in line with any other commodity prices. So, it has affected the topline numbers. However, the volumes are better than last year and production is also better than last year.
Sonia: But we did hear that the caprolactam prices have gone up quite a bit over the past three-six months. That has not impacted you positively in any way?
A: Yes, it has arrested the further negative growth but going forward it will have some positive impact because now in Q3 it will be having a major impact.
Sonia: What exactly has been the price increase in caprolactam over the last three-six months?
A: It has been in the range of USD 25 to 75, but with crude oil price firming up, it is seen on the positive side and the bottom out has appeared. So, now the price should move upward.
For entire interview, watch accompanying video.
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