He says that FY07 net sales are seen at Rs 15 crore (Rs 150 million), while profit is seen at Rs 8 crore (Rs 80 million).
Excerpts from CNBC-TV18's exclusive interview with Paras Savla.
You have recently bagged two CBM (coal bed methane) blocks, what is the sharing ratio you have bid with two other companies for this, and by when do they become operational? When will they start giving revenues?
We have bid for two blocks: one block is at Singrauli, MP in which we have a sharing ratio of 90 per cent. The other block we have is in north Godavari in Andhra Pradesh, where we have a sharing of about 40 per cent. We also have a tie up with a company in US called Coal Gas Mart, which is going to share 10 per cent out of it.
Four companies list on the bourses
When does this become operational? When do these start giving you revenues? What is the projection?
We are waiting for an allotment. We have already been shortlisted. As per what we have been informed, we expect the allocation or allotment to be coming in by the end of next week.
When do these become operational and what kind of revenue potential do you see in these blocks?
Talking about the revenues would be too much at this point. But according to the data that we have, we have a reserve of about 30 billion cubic metres of gas in each of these blocks.
By the end of '07 what do you think you might do in sales, profits and earnings per share?
For the topline, it would be somewhere about Rs 15 crore and we are looking at the bottomline of about Rs 8 crore. The equipment that we buy and deploy this year would have revenues coming in the next year. Hence we expect the topline to be about Rs 40 crore (Rs 400 million).
How would that translate into earnings per share on a diluted basis?
It would be about Rs 13.
What is your current earnings per share?
It is about Rs 6.
Are you expecting to double that?
Yes, it's going to double.
You have deployed a 100 tonne rig with ONGC, what kind of revenue do you see coming to your contract?
The revenues would be about Rs 5 crore (Rs 50 million).
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