Hope to maintain margin level in current fiscal year: Anurag Poddar, ED, Balkrishna Industries

In a chat with ET Now, Anurag Poddar, ED, Balkrishna Industries, talks about the company’s quarterly performance.

What has happened with the margins and would they stay at the current levels for the next couple of quarters?

As regard to the margins, they would stay at the current levels for the next couple of quarters.

Why would that be? Would there be possibility of a further dip in margins due to the jump in raw material cost or other factors?

Yes, there is some pressure on the margins with regards to raw material cost, but we have been able to pass on some of that rise with price increase in our finished products, with two price increases in the calendar year. Keeping that in mind, we should be able to sustain this level of margin in the current financial year as well.

How has the performance of the paper business been? Have you seen profitability in that segment for the quarter?

Paper business has also been good. It has been in line with expectations, but there is certain amount of margin pressure on that as well because of raw material price rises.

FCCBs worth around $22 million would be ready for redemption in December. Are you sufficiently funded for the same?

Yes, we have funded ourselves to internal accruals or that so we should be ready for that once it comes up for redemption.

Do you believe this would be the quantum of top line or bottom line growth for the quarters ahead as well keeping in mind the margin picture?

Yes, we had good sales figures for ourselves in terms of top line and we see that going forward as well.