Key Highlights

Q4 FY'15 was a one off bad quarter, where higher employee costs, international fare event costs and inventory correction, resulted in pressure on OPM.

Margins should come back in Q1 FY'16 onwards, and from thereon, there will be a steady rise in margins on YoY basis. However, pace will depend upon how much economies of scale benefits, company can gain and how much sales that can happen in FY'16. So far, nothing much is happening across the industry level as far as June'15 quarter is concerned.

As per the management, the company is entering into a healthy phase of positive consolidation due to a higher base of last year.

During this period, exports, newer products, increase in sale from JV businesses etc will drive the earnings.

Management didn't want to provide a complete annual guidance; wherein earlier it was hopeful for a 20% net sales growth in FY'17. Looking at current situation, it looks like a 15% kind of net sales growth with better operating margins on YoY is what one can hope for.

The endeavour is to increase the realization per unit of polymer that is sold by the company, rather than volume of polymers.

As per the management, better clarity will emerge from Sep'15 onwards wherein new products would have been tested, exports annual orders would have been firmed up and domestic demand scenario would have been known.