No fundraising plans on the anvil: Navneet Publications

In an interview with ET Bow, Gnanesh Gala, President of Director of Finance, Navneet Publications, shares his business outlook. Excerpts:

ET Now: Could you talk a little bit about the margin picture for the group? While publications has done well in terms of revenue and margins, stationery is seeing some pressure?

Gnanesh Gala: That’s right. As far as publication growth is concerned, the EBITDA level margins stands between 32-33%. So if that really grows well, which we are very sure of, the overall margins at the company level will definitely be on a higher side or an increased side.

ET Now: So what is the expectation on this break-up for the next two quarters?

Gnanesh Gala: Overall, I would say this being a seasonal business, very difficult to mention about the break-up between the two businesses for the particular quarter but in the past, we were doing 55% publication and 45% stationery. We believe, this year it would be beyond 60% in publications and balance in stationery.

ET Now: Just looking at a couple of research reports that are available, they believe that you would do the year in FY12, a revenue of close to Rs 650 crores odd and an earnings per share of maybe Rs 4 odd, you think you are on target for that?

Gnanesh Gala: Yeah. As far as earnings are concerned, we are quite positive on that. As far as top line is concerned, it could be around 625.

ET Now: But you would still do Rs 4 of EPS?

Gnanesh Gala: Yeah, we should be able to do that this year.

ET Now: Any fundraising plans on the anvil, there was some talk of that?

Gnanesh Gala: No, not at all.

ET Now: So no equity fundraising over the next six months?

Gnanesh Gala: No, not at all.