First Winner Ind sees FY09 revenues at Rs 250 cr

2008-07-08 20:05:25 Source : Bazaar/CNBC-TV18

First Winner Industries (FWIL), engaged in the manufacture of grey fabrics and in supplying textile fabrics to various wholesalers, apparel and garment manufacturers, listed at Rs 110 on the NSE against the issue price of Rs 125 at a dicscount of 12%.

Rinku Patodia, MD of First Winner Industries, sees FY09 revenues at Rs 250 crore and profit at Rs 20 crore, EPS at Rs 12.25. He sees FY10 EPS at Rs 20. The current net profit margin is at 8% and it is seen within 8-10% range.

Excerpts from CNBC-TV18's exclusive interview with Rinku Patodia:

Q: How much do you expect on the sales as well as on the profit front in FY09?

A: Sales is Rs 250 crore and profit around Rs 20 crore.

Q: How much is the Earnings Per Share (EPS) in Rs 20 crore of profit?

A: EPS is around Rs 12.25.

Q: How much part does wholesale comprise in this Rs 20 crore net profit and how much do apparel and garments constitute?

A: The margin of apparel will be coming around in 2010 because our project will begin in March 2009, so the profits from apparel will be coming in 2010.

Q: Do you have any EPS target as well with this Rs 20 crore target?

A: The EPS is around Rs 12.25 and it will be coming in 2009 and in 2010 the EPS will be around Rs 20.

Q: How did this huge jump take place in the revenues and profits between FY09-FY10?

A: The new project will start in March 2009, so the financial year’s profit will be coming in March 2010

Q: We have even heard that you are getting fabric on lower rates. What impact will it have on your margins and do you expect that your margins will go up or will improve?

A: Right now we are operating our profit margin at around 8% and going forward, I think that the level will be maintained around between 8-10%