New acquisition to complement glass biz: HSIL

Excerpts:



ET Now: It is an extremely strong quarter for you, 50% uptick in terms of the top line, the bottom line has grown as well, what has gone right this quarter and do you think the momentum can continue?



Sandip Somany: It has been a great set of numbers and not for the first time, our quarters for the last 5-6 quarters consistently we have been performing very well. The sales are up 42%, our EBITDA are up 56% and our PAT is up by 111%, a record quarter and we will continue to grow like this because these are the benefits of our gradual expansion, phase wise coming through, we have better utilisation of capacity, we have better pricing power and we have much better product mix which is helping us make more premium products. Both our businesses have done very well with the building products up in terms of revenue at 29% and our glass business where we are the second largest in the country up 54%, EBITDA margins at both the businesses have improved. So all in all, great set of numbers.



ET Now: And do you think this momentum can continue, I am just trying to figure out if indeed the kind of profits that you have posted in quarter one can be extrapolated for the entire year as well?



Sandip Somany: It can be.



ET Now: So what do you think you will do in terms of bottom line for the entire year?



Sandip Somany: As we said, we are looking at a bottom line against 215 crores EBITDA last year of about 300 crores which is a significant increase and we maintain and we stand by that.



ET Now: Any fundraising plans or expansion plans on the anvil right now?



Sandip Somany: There is no fundraising plan but there is an ongoing expansion plan of 650 crores and an acquisition that we will probably complete the week after next which is the acquisition ofGarden Polymers where we are buying the 4th largest pet bottle manufacturer in the country which is synergistic to our glass business.



ET Now: Of course your overall full year's estimates of sales and profits includes the growth that comes in from this acquisition?



Sandip Somany: No, that is extra.



ET Now: So how much growth do you envisage coming in from this particular unit that you are buying out?



Sandip Somany: Let's talk of the 2 businesses the acquisition separately. HSIL is a common entity encompassing the building product business and the glass business against last year's revenue of 1109 we are looking at revenues between 1500 and 1550 crores. The acquisition will be an additional 130 to 150 crores in revenue. In terms of EBITDA HSIL against 215 last year should do 300 and the new acquisition should do about 25, so the total EBITDA would then be 325 versus 215 last year.



ET Now: And you are saying that within a week or two's time this acquisition would be complete.



Sandip Somany: That's right. The paperwork is in the final stages, due diligence has been completed. The final signing off is probably 3rd or 4th of August.