Chandu Chavan, chairman of Innoventive Industries, in an exclusive interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, said the company expects growth in consolidated sales to Rs 850 crore and profit after tax (PAT) to Rs 90 crore in FY12.
He further added, "we see EBITDA margins improving to 26% in the next fiscal." Below is the verbatim transcript of his interview. Also watch the accompanying video. Q: What do you hope to achieve in FY12 in terms of sales and profits?
A: For FY12, we expect around Rs 850 crore of sale on consolidated basis and maintaining EBITDA margin at 26% in not unmanageable. Q: Can give a rough idea about PAT numbers for the next fiscal?
A: It should be around Rs 90 crore. Q: Is there an order book that you can talk about at this point? How much execution would be possible in FY12?
A: Our industry does not work on an order book because most of the orders are perpetual in nature. We get a quarterly, 6 monthly, or, monthly schedule and it continues each year. Q: Based on sales guidance and profit guidance that you have set out- can you give us an idea what the company's earnings per share would be in FY12?
A: Last year, we reported Rs 653 crore in sales and profit around Rs 53 core. So, maintaining the same margins will not be an issue because overall the engineering sector is doing well. Also read: Cap goods surge a one-off event, says Thermax MD
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