Textile company Sangam India Limited posted a net profit of Rs 17.2 crore with a total income of Rs 366.6 crore. In an interview to CNBC-TV18, SN Modani, managing director, Sangam India, says the company can better its quarterly performance in the days to come.
Below is the verbatim transcript of SN Modani's interview with Latha Venkatesh and Mangalam Maloo on CNBC-TV18.
Mangalam: What caused the margin expansion despite a fall in the topline and is this sustainable?
A: Apart from the raw material softening and also our efforts to increase the value added exports in denims and also in polyester viscose suiting. So that is the main point which increased margin by 330 bps.
Latha: You think you will be able to continue with this kind of a performance, can you give us what would be your quarterly runrate in terms of revenues and margins for the remaining FY16 quarters?
A: We feel it will be in line with this and probably it may increase because Sangam India has now forayed into the seamless garments in July 2015 and we have launched a brand where Sangam India is changing its face from B2B now B2C where we are coming out with seamless garments.
Mangalam: How will that reflect on your topline, what is your revenue likely to grow at?
A: Revenue will grow for this by around Rs 70 crore on this year because only 9 months are there and we have also announced today the capex of Rs 198 crore which will also increase our topline next year to around Rs 415 crore.
Latha: Where is the money coming from?
A: Rs 157.50 crore by way of term loan and Rs 40.50 crore from internal accruals.
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