Overseas economy, monolithic biz may remain bit sticky: Sunil Kanojia
Published: 16th July 2012 12:18 PM
Last Updated: 16th July 2012 12:18 PM
an exclusive interview with Meena Konar of Myiris.com, Sunil
Kanojia, Group President of Sintex Industries says, "We are
expecting kind of flat Q2 but have lots of hopes for things
changing for good from Q3 onwards."
Sintex Industries Cons PAT witnessed a fall of 50.52% in Q1 FY12
which was majorly due to MTM loss of Rs 289 million and fall in
total revenues. Going forward, do you think earnings performance
will remain sluggish?
Actually going by the macro economic environment, it is very
good performance esp against a quarter Q1 2011 which was unusually
good in very positive environment. We are happy to have kept it
flat and especially improved our margins on q-o-q basis. The MTM is
notional and beyond our control and would remain fluctuating with
USD/INR rate till it gets redeemed. Going forward a lot depends on
economic conditions changing. We believe, that things should
Sintex Industries has posted a fall in revenue growth of 2.3% in
Q1FY12. How do you see the revenue growth for the next quarter?
We are expecting kind of flat Q2 but have lots of hopes for
things changing for good from Q3 onwards.
How do you see overall industry outlook for Sintex
Sintex has very diversified portfolio across geographies and
market segment wise. We think that the overseas economy and
monolithic business may remain bit sticky but other businesses are
looking good. We however remain bullish long term on monolithic
business and as well as on synergy values derived from our overseas
subsidiaries, contributing to growth of Indian custom molding
Could you tell us about your capex and expansion plan?
For the time being capex plans are on bare minimum, considering
slowness of economy, in fact it gives us opportunity to improve
capacity utilization as well as conserve cash for FCCB
What is your message to the shareholders and investors of the
We would like our investors to remain rest assured on longterm
prospects of company especially from opportunities like social
sector infra spending by Government, our products alignment with
bottom of pyramid consumers and as well as high end composite
material which will provide great impetus to Indian subsidiaries
thru synergy benefits for large size Indian consumption market as
well as lit being low cost manufacturing base. This is like a
global opportunity for Sintex to exploit.