In an exclusive interview with Meena Konar of Myiris.com, Sunil Kanojia, Group Presidentat Sintex Industries says, "We are focusing on improving our balance sheet going forward by better management of working capital, generating free cash flow and increase our return on capital employed."
Sintex Industries Cons PAT witnessed a surge of 86.5% in Q2 FY13. Could you brief us about this? How do you see your performance for Q3FY13?
We do not comment quarter wise performance. We are looking at 8-10% topline growth for FY13 and similar on the net profit. We have improved our performance in prefabricated building systems, domestic custom molding which has boosted our overall growth during the quarter. A strong Rupee during the quarter has led to better PAT and also note the same quarter previous year Rupee was negative, so that has further aided the jump in PAT.
The company witnessed a drop in operating margins, which fell to 10.11%. Could you tell us the reason for the same?
The operating margin is at 15.3% during the quarter under review. We hope to maintain FY13 EBITDA at 16 to 16.5% approximately. Quarterly margin are not the true yardstick.
How do you see overall industry outlook for Sintex Industries?
Sintex is present in education, healthcare, sanitation and low cost housing segments which are a need of the day for a developing country like India. We believe in the long term potential of these segments. Besides, custom molding business we are a leader in India and have scaled up globally with a unique business model enjoying customer relationships through our international subsidiaries and offering India base for manufacturing at much reasonable cost for outsourcing. So we believe Sintex is well positioned for each of its businesses and the outlook is robust growth for medium to long term.
Could you tell us about your capex and expansion plan?We have done capex"s in the past. We are focusing on improving our balance sheet going forward by better management of working capital, generating free cash flow and increase our return on capital employed. These are key focus areas.
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