Expect Rs 1500 crore turnover in FY12: Nishant Arya, Executive Director, JBM Group

Nishant Arya, Executive Director, JBM Group in an interview with ET Now talks about the expected turnover and profit for the company in the year ahead.

It has been a good quarterly performance and the annual performance is not bad too. Do you think this would continue or would the cost pressures get to you because the margins maybe for the year as a whole took a bit of a dip?

No. I see that there is a good growth coming in since our major customer is Maruti and we are supplying to them. Maruti is clocking big numbers. This year, we touched 1200 crore of turnover with the EBITDA of 106 crores.

For the next year, we see about 1500 crores of turnover coming in but the margins would be tough to maintain at the same level. The company had developed some strategies to take it forward and we have brought a lot of engineering changes and a focus on product and cost management with which we will be able to maintain the margin or rather grow them further up in the same proportion.

Is there a target that you are working with on that?

In the same proportion, margins would be growing as they are around this year.

Rs 1500 crores is what you target in terms of FY12 revenues, what would it do to profitability because your PAT jumped 82% to 38 crores, what does the bottom line growth look like?

Bottom line growth is under process, to be worked out right now because since last year, the base was also low. It was a bad year and this year, we outperformed the market since the company did very well on cost management also and on productivity. We will be working on similar kind of growth.

In the next 2 months, we will be working out the whole plan for the year, the cost management strategy and the productivity strategy. Since the customers are also doing well, customer sales are not a pressure for us.

Any fundraising plans?

Yes, we are investing about Rs 200 to Rs 250 crores in investments. We will be having a combination of internal accruals and debt for funding that growth.

And nothing on the equity side?

Nothing on the equity side as of now.