Excerpts from CNBC-TV18's exclusive interview with R Srinivasan:
Q: What kind of money are you looking to raise and what will be the purpose?
A: We are looking to raise about Rs 150 crore for setting up new distribution centers in India. We are planning to set up four distribution centrers in India.
The second objective of the issue is to set-up 68 service centres in India, we already have 43 service centres. The third objective of the issue is to set-up a repair facility for LCD panels, the market for which is growing quite fast in India and repair at the moment is been done in Taiwan or in Korea. Lastly, we intend setting up a very large distribution centre in Jebel Ali in Dubai.
Q: How much of your revenues come from the Middle East and Africa?
A: 50% of our revenues are from the international business and 50% from the domestic business. Last year our turnover was in the region of about Rs 6,700 crore, so approximately 50% of it is from Middle East and Africa.
Q: How much better will your margins be because of these service centres?
A: Our service margins are much higher than our product distribution margins but in terms of our total revenue, the services do not constitute more then 4% at this point in time.
Q: For the first half of 2007, you had done an EPS of just about Rs 5. Would it be fair to annualize it for 2007 and say you will close the year by about Rs 10?
A: No, on an annual basis it would be more prior to dilution, post dilution it could be in the region of about Rs 10.3.
Q: You are looking to raise about Rs 150 crore and looking to issue about 1.32 crore equity unless you are looking to do pre IPO placement. Would it be fair to assume that you price to IPO of about Rs 115?
A: Our price would between Rs 95-113 - that would be correct.
Source : Moneycontrol.com, 11th Jan 2007