Meanwhile, the debt on company's book stood at Rs 899 crore in FY12 and the company is now looking to reduce debt and interest costs aggressively.
"In the last quarter, we managed to reduce interest cost by about 30 percent, and we plan to do the same in FY14," he added.
Also read: Finolex Ind commences commercial production at Gujarat plant
Below is the edited transcript of his interview with CNBC-TV18
Q: I would assume that much of the good cheer on the stock is because your manufacturing facility will start contributing to revenues this year. Can you take us to exactly what is the capex that is on stream now, and how much will it increase your volume and sales in FY14?
A: The Masar plant has already started, and will add about 25 percent more capacity to our pipes production. Part of it came in last year and most of it will come in FY14.
Q: What might that do to your sales numbers? Should we assume a 25 percent rise in revenues?
A: We consume our own PVC (polyvinyl chloride, one of the most widely used plastics), so there is an internal transfer. So it does not reflect on the top line, but the bottom-line is better.
Q: By how much would your margins and profit go up?
A: I cannot give forward looking statements but it will be a good number.
Q: When will the second phase of this plant affect your margins? Will it be in the second half of FY14?
A: Yes. The full commissioning, or the full effect will come in the second half of FY14.
Q: So what would that do to FY15? Will it show incremental revenues?
A: Again, incremental revenues don't go up drastically because of internal transfer. The raw material is manufactured by us at Ratnagiri, and therefore it does not really reflect in a higher turnover. So the top line is not going to change dramatically but the bottom-line changes big time.
Q: Can you give us some ballpark figure, at least in terms of the margins? How much will they improve? You did 9 percent in the last reported quarter.
A: The margins would improve by at least a couple of percentage points.
Q: So, should we look at 11 percent margins or more in FY14?
A: I can't say exactly but I would say so, yes.
Q: In the last quarter, you managed to reduce your interest cost by close to about 30 percent. What could we expect for Q4 and the coming fiscal year in terms of your debt as well as the interest costs?
A: We are aggressively looking at reducing our interest cost and debt and you can see the reflection in numbers. The same thing is going to be repeated in Q4 and for FY14.
Q: So what does the debt currently stand at and how are you planning to reduce it and by how much?
A: Debt in last year's balance sheet was about Rs 890-900 crore and we are going to gradually keep reducing it. We are doing it by internal generation. That is because the margins are improving so we have additional cash flows.
Q: Are you noticing an improvement in demand for the pipes?
A: Yes definitely. Demand for pipes is increasing, per month we are sold out. We run 24X7 and we are already sold out everyday.
Q: Can you give us a ballpark figure on even your profit growth since you say it is largely the bottom-line that will be impacted? You did Rs 75 crore in FY12. In FY13, you have got part of your capacity coming on stream and FY14 the entire thing. So can you give us some kind of a percentage increase that the bottom-line will enjoy?
A: I can only say it is going to be a good number. Our board meeting is slated for May 4 so it is hardly a month away.
Q: What is your expectation for FY14 revenues?
A: It should be in double digits.
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