In an interview with CNBC-TV18, Mr Ashok Punj, MD of PSL Holdings Limited spoke about the results and his outlook for the company. Here is a verbatim transcript of the exclusive interview with Mr Ashok Punj on CNBC-TV18. Also watch the accompanying video.
Q - Can you take us through your numbers?
A- We did a topline of INR 606 crore, last year it was INR 661 crore and the net profit was INR 21.58 crore against the previous year's quarter number of INR 21.61 crore. So in a nutshell the topline is shrunk by about 8% to 9% whereas the bottomline, the net profit we have been able to sustain at previous year's numbers. I would only like to hedge that by saying that our main input is steel and the steel prices are down about 35% to 40% over last year's numbers and that is the major factor in our topline.
Q - Can you tell us your margin number as well and has there been any interest cost if you could also give us that number?
A - Yes the interest cost is actually improved this quarter over the previous year's equivalent quarter and the numbers are INR 18.58 crore on this quarter against INR 20.4 crore and this is a reflection of the lowered interest rates and the higher rates that were prevailing last year.
Q - How about your margins?
A - I don't have the number for margin but I am showing a gross profit of 31.82 against 32.2. So it is pretty much kept even on the profit front helped along by the lower interest despite a lower topline by 8-9%.
Q - What explained the tepid sales, is it that you are not working to capacity or is it that realizations were lower?
A - The industry as a whole is not working to capacity but I would say the major explanation lies in the drop in steel prices which get reflected immediately but having said that there is a huge pile up of projects on the horizon, a gas grid related project, and the whole industry is waiting for the release and implementation of those. There has been some delay or slippage in those projects coming to tender and we are hoping that those are behind us and in the next two quarters of this year, we hope to see a faster pace of the industry and project for the gas grid in particular.
Q - Is there any reason to hope that way? Are you seeing any bids being put out?
A - We have an orders-in-hand situation of about 1,600 crore, which will get executed within this financial year. We are hoping for additional orders from the gas grid component, which will come to maturity this year and at least a part of those orders will get executed, we hope, within this financial year.
(Sourced from CNBC TV18)