Our EBITDA margin will stand around 30% for the next five years: Vinati Saraf Mutreja, Vinati Organics
Vinati Saraf Mutreja, MD & CEO, Vinati Organics Limited (VOL), talks about her source of inspiration, demand in enhanced oil recovery segment, the impact of anti-dumping duties on her company, new products launches, growth guidance for Isobutyl Benzene (IBB) segment, new capacity related to IB derivative segment during a candid chat with Zee Business Executive Editor Swati Khandelwal
Vinati Saraf Mutreja, MD & CEO, Vinati Organics Limited (VOL), talks about her source of inspiration, Demand in enhanced oil recovery segment, the impact of anti-dumping duties on her company, new products launches, growth guidance for Isobutyl Benzene (IBB) segment, new capacity related to IB derivative segment and margin guidance of Viniti Organics for next five years among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:
Q: Name the form of the Goddess from whom you draw inspiration?
A: Since childhood, there has been a strong emphasis on studies in our family, so I have a great belief in Goddess Saraswati. She also inspires me a lot because I think you can make your life only through education. Goddess Durga also has the place as she gives us the power for whatever you have in your mind and want to achieve it. Durga Maa also provides you with the power to do whatever you want to do including taking care of the children as well as the family. So, all Goddess have their place.
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Q: As you are saying that you are in niche products and good margins are expected from them. So, what is the margin guidance of the overall company for the next 3-4 years?
A: If you have a look at the last year, then the EBITDA margin was somewhere in the range of 40%, which is very high for any manufacturing business. So, if it is seen in a long-term then the sustainable margin will be somewhere around 30% maybe you there is a lot of specialities. Because in the butyl phenols we will be competing with imports, thus the margins are low. So, 30% EBITDA margin is a safe estimate going forward for the next three to five years.
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