Packaging firm Essel Propack has posted a steady Q3 results—profits have risen 41 per cent with margins too surging higher. Speaking to Bloomberg TV India, Essel Propack vice-chairman and managing director Ashok Goel says the pass-through impact of sliding raw material costs have dented revenue growth which has been diverse across geographies. With demand revival in India, Essel expects to grow the top line by 15 per cent and bottom line 20 per cent next year as well, he said.
How has this quarter panned out especially with regards to raw material cost and how much of that have you been able to pass through? How much of the impact you have taken on your margins because of this? Raw material costs have been soft in the last two quarters. The pass-through impact has already taken place. The impact of that is anything between 3-5 per cent. The range is because different geographies have different impact. Therefore, that has subdued some of our revenue growth. Excluding the divested business and for the raw material pass-through, our underline growth has been about 5.2 per cent.
We grew little bit this year and by beginning of next year we will have further capacity expansion. Egypt and India have been a little bit of a downer. In India, we see demand is beginning to revive right now. And with the Indian FMCG player as well as the multinationals, we see growth next year.
We of course will go through our budgeting process next month. And I still believe we will grow the top line by 15 per cent and bottom line 20 per cent next year as well.