In
an interview with ET Now, Ranjit Singh, Whole Time Director & COO, Polyplex
Corporation Ltd., talked about his company's internal revenue, profit, EBITDA,
EPS guidance and the expansion plans. Excerpts:
What are the current
realisations and would there be price hikes?
We announced a
price increase on 1st of September as well as on 15th of September. Currently
our price for a standard 12 micron film is about Rs. 200/kg already,
that's a basic price plus excise duty, so the numbers that you talked
about are already there.
Is it
really a demand push that is leading to this price surge?
Yeah. Globally the shortage continues as well as in India, so we expect
the shortage to continue as we go forward and we expect the prices also to
continue going up.
What's
your internal revenue, profit, EBITDA, EPS guidance that you have for FY11,
possibly even FY12?
We are very confident that we would be
able to get a top line number of 2500 crores plus and our EBITDA margins will
keep continuing to grow and the kind of performance we will have is definitely
going to be something that we will be proud of and our investors are going to
benefit from that.
The report also
speaks about big expansion plans in the pipeline. Would you be adequately funded
for the same or would there be any kind of equity fund raising in may be the
next couple of quarters?
No. As far as we are concerned, in
2002, we were about a $40 million company. From there, today we are $500 million
company, so we have had a tremendous growth and that is going to be profitable.
Our target is to get to $1 billion, so whatever is required to get to this $1
billion level, so we could go for raising further equity. How we are going to
raise it, etc. is still under consideration, so we are not very clear about how
we will do it.
You just mentioned
that you might actually go in for equity dilution. Is there a timeframe? Would
it be in the current quarter? Would it be in the next quarter or the next couple
of quarters from now and how would your debt equity situation change as a result
of that?
No, I did not say that we are going for an equity
issue, all I said was we could be considering an equity issue because we need to
finance our ambitious growth plans. We have got plans of becoming a $1 billion
company in about 5-6 years time and obviously it has to be supported both by
equity as well as debt and internal accruals. As far as debt equity ratio is
concerned, on a global basis, on consolidated basis, we are about 0.5-0.6
levels, so we have got significant debt raising capacity but we will still look
at higher equity capitalisation as far as we are concerned, so plans are very
early. We are still looking at various options, which are there and we will come
back very soon to the market about any announcement once we have decided.
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice.
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