Devesh Bansal, Director, Skipper Limited

"The company has participated and submitted tenders worth over Rs 3,000 crores during the current financial year and expects to see a significant portion of those getting converted into the order books."

Feb 06, 2016 07:02 IST IIFL Yash Ved |

Devesh Bansal, Director, Skipper Limited graduated from St. Xavier’s College Kolkata. With a Master's in International Business degree under his belt, he is heading the Tubes and Tubular products divisions of the company. He is also responsible for the group's upstream expansions.
 
Established in 1981, Skipper Ltd. has evolved into one of the world's leading manufacturers for Transmission & Distribution Structures (Towers & Poles) in it's Engineering Products segment, a leading and respected brand in the Plastic Water Pipes sector as well as trusted partner for executing critical Infrastructure EPC projects. Skipper's market reach spans across 20 countries around the globe from South America, Europe, Africa, the Middle East, South and Southeast Asia and Australia. It is one of the world's largest Integrated Transmission Tower manufacturing companies with Angle Rolling, Tower, Accessories & Fastener manufacturing and EPC line construction.
 
Speaking with Yash Ved of IIFL, Devesh Bansal says "The company has participated and submitted tenders worth over Rs 3,000 crores during the current financial year and expects to see a significant portion of those getting converted into the order books."
 
Brief us about your Financials?
For the third quarter and nine months ended 31st December, 2015, the company achieved a sales growth of 22 % over the previous year corresponding period.
 
The net sales of the company increased to Rs 939.62 crores from Rs 770.76 crores
 
Operating EBITDA rose by 22 % over the previous year corresponding period. The operating EBITDA increased to Rs 127.70 Crores from Rs 104.46 Crores
 
The Operating PBT increased to Rs 72.52 Crores from Rs 47.48 Crores, registering a growth of over 53% over the previous year corresponding period.
 
What are your plans for PVC products capacity expansion?
The PVC business has been registering almost 100% growth and has already captured a significant share of the Eastern India market. After the Ahmedabad plant launch in Q1 FY’16, the company sets its foot in to the North Eastern India by commissioning its manufacturing plant in Guwahati on December 2015.
 
The plant is one of its kinds in the whole of North East. The state-of-the-art manufacturing unit has come up at Kamrup district near the airport to produce plumbing and agri pipes. The plant will have a manufacturing capacity to produce 4,000 MTPA.
 
Currently the total capacity of the PVC Pipes & fittings division is 29,000 MTPA and work is in full momentum for the upcoming PVC pipe manufacturing at Sikandrabad near NCR, and Hyderabad , the company expects to get it commissioned by Q4 FY’16 and is targeting to end the year with an installed capacity of 40,000 MT.
 
The company also has plans to take the total capacity to 100,000 TPA by FY 2019, addressing the need of the Country for superior quality of PVC pipes and products.
 
Brief us about your business highlights for the quarter?
Despite dip in commodity prices, we maintain growth in our business.
 
The company has participated and submitted tenders worth over Rs 3,000 crores during the current financial year and expects to see a significant portion of those getting converted into the order books.
 
What is your mix in terms of different segments?
About 88% of our revenue comes from Engineering products and 10% comes from PVC business.
 
What is your current order book position?
The company’s current Engineering products order book position stands at approx. Rs. 2,400 Crores (March 2015).International orders make up about 45% out of this and the rest are domestic.
 
What are your export target?
There has been multifold increase in export revenues, in line with the company’s target to achieve a higher export share of about 40% in total revenue.
 
What is your revenue mix?
About 50% of our revnue comes from domestic and remaining 50% of our revenue comes from international market.
 
Your plans for international market?
The company is strengthening its business presence in overseas markets, namely in Africa, Europe, North America and Lat-Am region, resulting in healthy growth in both top line and bottom line.
 
For 2015-16, the Company has over Rs. 1,150 crores worth of export orders and is targeting to enter newer geographies.
 
What is your EBITDA margin?
We have consistent Operating EBITDA margin (W/o considering Forex and Other income) at 13.6%.
 
Your revenue target for the current fiscal year?
We are eyeing 20% revenue target for the current fiscal year.

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