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Vinati Organics pegs sales at Rs 1000cr in next 4-5 years
Vinati Organics’ net profit rose by 44% at Rs 16.7 crore for the quarter-ended March 2011, against Rs 11.6 crore same period last year. The net sales stood at Rs 87.6 crore versus Ts 62.3 crore, year-on-year.
In an interview with CNBC-TV18, Vinati Saraf Mutreja, executive director ofVinati Organics, spoke about the companyas fourth quarter performance and the road ahead.
Below is a verbatim transcript of the interview. Also watch the video.
Q: Was this largely a volume driven growth or were you able to push up prices as well? How did the realisations do and what did you do by way of margins?
A: It was mainly a volume-driven growth. The growth coming from our ATBS volume where we have been able to debottleneck our capacity on account of the growing sales demand, so QoQ also there is a growth. Year-on-year as well there is a growth, like our ATBS metric tonne-wise has grown from 7,000 tonne to 11,000 tonne this year.
Q: What is it in terms of expansion hereon? Your total ATBS expansion capacity was suppose to be 18,000. What do you make in FY12? Are you going to see a QoQ as well as year on year jump?
A: The ATBS expansion of 18,000 is expected to be completed by December 2011 and having said that this year we will see the ATBS growing from 11,000 to 15,000 and in FY13 we should reach 18,000 and in FY14 21,000 in terms of volumes. Along with ATBS we are going for other products also which will add to our sales volume.
So next year we should cross Rs 400 crore in revenue and in the next four-five years about Rs 1,000 crore.
Q: Since you do have expansion plans could you tell us what your FY12 and FY13 revenues would look like? What is the kind of growth guidance that you have working with and what about even on the EBITDA margins front?
A: Our total sales should cross Rs 400 crore. That is growth of about 30% in FY12 and in FY13 because most of the expansion gets completed in December. So its effect will be seen more in FY13. We should cross Rs 600 crore then.