In an interview to CNBC-TV18 Nishant Arya, ED, JBM Group says the company is moving towards becoming an end-to-end solution provider and a one-stop shop for our customers.
The company has been focusing on expanding their product portfolio to most segments of the automobile sector like four wheelers, three-wheelers, construction equipment, he adds.
The company is enhancing the operational efficiencies by being present in main auto hubs like NCR region, Bangalore, Pune, Chennai etc
Moreover, the company aims to achieve a CAGR of 20-25% over next three years
The debt-to-equity ratio currently stands at 0.66.
Also read: See India's global export share at 4.5% by 2030: HSBC
Below is the transcript of Nishant Arya's interview with Ekta Batra and Reema Tendulkar on CNBC-TV18.
Reema: In one year the stock has seen a rally of 1300 percent. Can you tell us what the outlook is because we have seen a pickup in autos? For your company what would be the revenue growth as well the margin performance?
A: There are multiple reasons for this growth because our company has been focusing on expanding our product portfolio. We have now been catering to other sectors in automobile industry like four wheeler, three-wheeler, commercial vehicle or construction equipment.
Our locations are all in the main auto hubs. So, if you see in the northern region, the NCR region, then in Chennai, Bangalore, Pune, the new Sanand region which is coming up. So, we are well positioned for growth. At the same time we are enhancing and improving our operational efficiencies so that the bottomline is improving and we are able to enhance the value for the shareholders and all stakeholders.
We are also strengthening our research and development (R&D) and value engineering capabilities in the company. So, being an end-to-end solution provider for our customers and becoming a one-stop shop for our products.
Ekta: Which would be your biggest clienteles and what would be the order that you would be servicing possibly? Can you just tell us your capacity utilisation levels also?
A: We are having multiple plants but on an average we are working on two shift basis in this company. We are catering to multiple clients be it Honda, Ford, Mahindra and Mahindra (M&M), Tractors and Farm Equipment (TAFE), Eicher Motors, Escorts, Nissan, Renualt, etc. We are catering to all different clients in this sector. So, it is not one particular client and all the clients are really essential for us because we are catering to them with different products.
Reema: What is the expectation of a revenue growth in FY15 as well as do you have any capex plans?
A: We have about 20-25 percent compound annual growth rate (CAGR) growth plans for next three years. We see these coming through current expansions, new plants, new customers, more products etc. So, that will be a constant activity which will enhance the growth of the company.
Ekta: What does your balance sheet look like at this point? How much debt does you all have on books, what is your cash on books and what is the sort of free cash flow that you generate?
A: In FY14, we had an EBITDA margin which was around Rs 120 crore or so and profit after tax (PAT) was about Rs 50 crore. If you talk about the cash, it was a little more than Rs 100 crore. So, the company is very well placed and we will be making certain investments also which we have already announced.
Our new plant in Indore has come up this year which has already started operating and we are starting with our bus project which is again a very important project for this company because that will be fueling a lot of the growth in the future. It is a big step forward which we have taken stepping into original equipment manufacturers (OEMs) league especially for the bus vertical, and we are focusing on certain type of city buses where the market is enhancing and there is a big room for companies like us to perform and showcase our capabilities.
Ekta: I did not get your debt figure?
A: Our debt to equity ratio is about 0.66.
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