Overseas economy, monolithic biz may remain bit sticky: Sunil Kanojia

In 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 improve.

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 Industries?

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 business.

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 redemption.

What is your message to the shareholders and investors of the company?

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.