Looking for Rs 170 crore turnover in FY12: Vipul Vora, Rushil Decor

In an interview with ET Now, Vipul Vora, CFO, Rushil Decor, talks about their IPO funds investment plan and their revenue estimates for FY12. Excerpts:

ET Now: You plan to invest the IPO funds for setting up a medium-density fibreboard plant in Karnataka. Are the land and the government clearance taken for the same?

Vipul Vora: Yes. We have obtained all the permissions. The Karnataka government has given single window clearance permissions.

ET Now: Could you share your revenue estimates for FY12?

Vipul Vora: As per FY12 estimates, our turnover would be around Rs 170 crore with added MDF turnover. PAT will be in the range of 5-6% of the turnover.

ET Now: How will you manage that number because if crude prices go up, that will hit your margins?

Vipul Vora: For MDF and the other business, chemicals are being utilized. Not much voluminous materials are being used there. Major cost for raw material goes in wood waste, cotton stock and paper. So that will not impact our profitability. I have converted Rs 44 crore term loan. I have converted 67% turnover into ECB, whereby I am bearing 5% interest.