At current polymer prices, for current year ended June'15, the company envisages an annual growth of around 18-20% in net product turnover on YoY basis.

The company has revised its capex plan to about Rs 250 crore during the year from earlier target of more than Rs 400 crore. This includes Kharagpur complex having facilities for Protective packaging products, PVC and HDPE pipe systems, Material handling products, furniture, septic tanks and water tanks, introduction of additional varieties of pipe fittings and bath fittings, premium range of furniture, moulding machines and other balancing equipments for better production efficiency in industrial product division and pipe fitting division at Jalgaon and Malanpur, new unit in Malanpur to produce Septic tanks and water tanks and to expand capacity of protective packaging products at Hosur and Malanpur and automation of plant at Jalgaon.

Construction division has negotiated sale of about 29511 sq feet premises with consideration of around Rs 46 crore and will be completed before Mar'15. After the envisaged sale, the company will have a further area of about 1.12 lac sq feet to be sold in future.

Plastic piping business saw a volume growth of around 7% and volume stood at 30086 MT. There was a value growth of about 4% and value stood at Rs 352 crore with margin of around 12.6%.

Packaging product business saw a 23% increase in volume which stood at 7482 MT and there was a value growth of around 8% to Rs 159 crore with margin of around 13.1%.

Industrial saw a volume growth of around 14% and value was more or less same at around Rs 159 crore with margin of around 9.3%.

Consumer product volume stood at 2926 MT more or less at same level while value was down by about 10% to Rs 51 crore with margin of around 8%.

Subsidy element during Sep'14 quarter was Rs 6.03 crore and management expects for full year the subsidy to be around Rs 25 crore as compared to about Rs 47 crore for last year ended June'14.

There was about Rs 7 crore inventory loss during Q1 ended Sep'14 and management expects inventory loss to continue in Q2 as well.

Cross laminated PVC films Q1 volume stood at 1945 MT vis a vis 1758 MT YoY. On value wise the sales stood at Rs 46.6 crore vis a vis Rs 40.03 crore YoY. Sale from CPVC business for Sep'14 quarter stood at Rs 56 crore vis a vis Rs 55 crore on YoY basis.

As per the management, the PVC price reduction was severe and has reached the bottom. Management believes that for PVC most of the reduction has taken place to the extent crude hovering around US $ 80 to US $90. Unless crude goes further down, then the fall will not continue. Infact post Nov'14, management expects prices to rise. With strong demand, management continues to remain firm that they will bounce back strongly in margins.

Also there was an Anti dumping duty on PVC from imports from China being levied in Sep'14. Around 40000 tons of PVC was imported every month from China. Slowly this has started reducing and management expects prices to stabilize.

PE and PP prices are not that down for the quarter ended Sep'14 as compared to PVC prices, although the trend was confirmed on lower side.

Value added product sale stood at about 29.18% as compared to 27.9% on YoY basis.

The company's borrowing stood at Rs 769 crore as on Sep'14. Average costs of borrowing are 8.83% p.a.

Costs of plastic raw material with declining trend will result in some short term inventory loss however long term this will benefit the demand and company will be able to increase the market share.