Highlights of the call are:

• The company has reported 47% jump in the Net Profit at Rs 76.27 crore over 39% increase in the total income from operations at Rs 788.55 crore for the quarter ended March 12. Tonnage sales grew 19% growth to 36358 MT.
• For the year, the company has posted 48% increase in the net sales at Rs 2794.82 crore; thanks to 19% increase in volumes at 133040 MT. Strong growth in the revenues has led to 45% increase in the Net Profit at Rs 268.52 crore. The company has mitigated sharp rise in the NR prices in the year and reported strong profit. Growth has come across all geographies in Europe, USA, and Asia etc.
• However, in light of ongoing European debt crisis, the management noted that they have witnessed demand slow down in the European markets during the first two months of FY13. The share of revenues from Europe is expected to correct from 46% in FY12 to 43% in FY13. This gap is covered by healthy demand growth in American replacement market.
• Average Rubber prices for the quarter were USD 3500 per MT. Expecting further fall in the NR prices, the company has tied up for 2-3 months production by way of forward contracts on an average of USD 3300 per MT. The company imports its all raw material products. Even considering depreciation of rupee at 56 levels against USD, the imported NR is cheaper by Rs 12-15 per Kg. Since the company exports its finished products, it enjoys nil duty imports. The company exports its tyres under Advance license scheme (with benefits of 5-6% of sales).
• The company doesn't hedge its export book to USA as it has natural hedge by importing the raw materials. However, it has hedged European orders at around Rs 70 per Euro for the next 12 months.
• The company plans to increase current capacity by 12000 MT through debottlenecking, there by taking the total capacity to 1,56,000 MTPA. Green field Bhuj Green field capacity is running as per schedule and is expected to commence operations by end of September 12. However, full capacity utilization from this plant will be in FY15. While first tranche of USD 175 million of the total capex (USD 275 million) was drawn (at libor + 265 bps) already, the company has tied up for the remaining portion of USD 100 million (at libor + 320 bps). The company can gain 1-2.5% improvement in margins post Bhuj expansion on the back of logistics cost and fuel cost. The share of Agriculture and OTR tyres was 64% and 33% for FY12. Post full commissioning of Bhuj plant, the mix would become equal.
• The company is maintaining 20% price differential from the leading players in Europe and USA markets. There is no scope for the downward revision of prices in current situation.
• The company has spent capex of Rs 623 crore for FY12. It expects to spend Rs 750 crore towards Bhuj capacity and Rs 30 crore for debottlenecking and Rs 30 crore as regular maintenance, totaling to around Rs 800-810 crore in FY13. Total achievable capacity post Bhuj expansion is 276000 MTPA. Debottlenecking process is expected to be completed by end of Q3FY13.
• The order book of the company at end of March 12 stands at Rs 64000 MT equivalent to order visibility for 5 months of volume sales.
• Capital work in progress at end of FY12 stood at Rs 450 crore on standalone terms.