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EPS for FY07 seen at Rs 70: BL Kashyap
Moneycontrol.com | June 29, 2006 15:55 IST
Vineet Kashyap, MD of BL Kashyap says that the EPS for FY07 is seen at Rs 70. He also adds that the revenues for FY07 are likely to double, while the FY07 EBITDA margins are seen at 10-12 per cent. He further says that the current order book stands at Rs 1,000 crore (Rs 10 billion).
Excerpts from CNBC-TV18's exclusive interview with Vineet Kashyap:
According to one research report, one seems to believe that you could actually double your revenues next year and treble your profits. Do you think it is possible?
Yes, as of now, the trend in the first two months in this financial year does show that we would nearly double our revenue.
What about profits on the Rs 28 earnings per share that you have delivered this year? Could you do something close to Rs 70 odd next year?
The target within the company is to deliver Rs 70 as an EPS, but we are striving to better that.
What sort of margins do you hope to deliver and what is your order book like?
The EBITDA within the company, as of now we were striving to achieve between 10-12 per cent. As of this financial year, we have done 10.92 per cent. We hope that we will continue to achieve better results.
As of June 1, 2006 our order book is at Rs 1000 crore (Rs 10 billion), out of which 80 per cent should get completed within this financial year.
How do you expect the order book to grow in FY08 with the target that you have just set out for sales?
Eighty to ninety per cent of our projects are of a short duration, between 4-12 months. We would continue to pick up projects as soon as we finish some part of our projects; therefore the visibility for us is not beyond one-year. We continue to take projects every two months and we will continue to inform you as well as the bourses of our regular project intake.
You have improved your margins this year from under 8 per cent to almost 11 per cent. What led to that spike? What gives you the comfort that despite raw material price increases and commodity price increases; you can actually build on that margin growth further?
We have a business model. The escalation on 60 per cent of the construction component, which is steel and cement, is passed on to the client. So therefore, the escalation in these materials will not affect our bottomline.
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