Estimated EBITDA near Rs 22 cr, PAT Rs 7.5 cr: Rajendra Kanoongo, Ashika Capital

In an interview with ET Now, Rajendra Kanoongo, Investment Banker, Ashika Capital, shares the details of the company’s financials and the listing of Sudar Garments. Excerpts:

Share with us your estimates for the company in terms of financials for this year and next year.

As far as the current year is concerned, the top line yields will be around Rs 115 crore, EBITDA of around Rs 22 crore and PAT of around Rs 7.5 crore.

Why is your EBITDA number so strong and PAT number so weak? Why is the difference?

There is a difference because there will be depreciation and there is a tax element and of course there are finance charges because the company is already having lots of borrowings. So all these put together, we will have an impact on PAT.

What are you going to do with the IPO proceeds?

As far as the IPO proceed is concerned, we are going for the expansion of the existing upper-end unit and some money is required for the working capital requirement. Some money we have allocated for the market, retail outlet and brand building and some of the amount is for general corporate purposes.