Analyst Meet / AGM - Analyst Meet
Expects sales growth of about 16% with stable margin for FY'15
The company held its Analyst Meet on 12th May'14 and was addressed by Mr. P Bajoria Managing Director
Key Highlights
During FY'14, the subsidiaries particularly UK and USA performed strongly both in sales and margins. Overseas subsidiaries all together reported a PAT of Rs 24.4 crore, up by 175% YoY.
Company has many clients and is constant discussion with almost 50% of the global steel market.
Of the total consolidated sales, about 20% came from India and rest is from international operations. As per the management, going forward, the sales from India will increase substantially, as domestically, with stable government, economy will revive. Also with many capacities have been shifted to India, the Indian operations will be used as a base for exports both directly as well as indirect exports.
Company generally enters into long term contract and agreement for raw material requirements while sales contracts are negotiated on contract to contract basis. Even the sales contract is for long term.
There was a foreign currency benefit from rupee depreciation especially against Euro and Pound to the tune of about Rs 9 crore in FY'14.
Company plans to double the capacity both in India at its Kandla plant in Gujarat and in US. The total capex will be not more than US $ 1 M both put together, as the expansion is more to do with debottlenecking the existing facility and adding parallel lines. Management expects the capex to be operational from Jan'15 onwards.
Debt will not increase in FY'15 as there are some repayments lined up.
The company has spare capacity in India, China and UK operations which on an average will take care of the sales growth for FY'15.
As per the management, the company has technology at par with other MNC companies. The biggest advantage of the company vis a vis MNC players is on the costs front and also on how to get things manufactured and done in Indian conditions.
Going forward, both exports and domestic market will drive the growth in FY'15.
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