LG Balakrishnan & Bros is seeing some profit booking, post strong Q2 results with margin improving 400 basis points. To shed light on the company's Q2 earnings, B Vijayakumar, Chairman and MD of the company, spoke to CNBC-TV18.

On revenues, Vijayakumar said that he would like to be cautious and so they will be ending this year with Rs 1,800 crore of revenues.

“We will be maintaining the same momentum next year.”

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On margins, Vijayakumar said, “I would like to maintain the EBITDA level to 15 percent and going forward, we will try to maintain it at about 15 percent. We have an automatic adjustment for raw material increases with our customers. The only expenses that we will have to bear would be increase in labour costs, salaries and wages, power costs, and we have to be prepared for that. Taking all this into consideration, we will maintain our figure at 15 percent.”

Talking about export market, Vijayakumar said, “Exports is about 12 percent and the growth rate is about 15 percent in exports.”

L G Balakrishnan & Bros (LGB) is one of the leading companies in South India. The company which was started with a fleet of 250 buses grew into India's leading Roller chain manufacturer.

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On US business, he said, “We are making profits, the turnover is good, but unfortunately in the US, I can’t forecast because there is a chip shortage and vehicle manufacturers are being affected by it. Fortunately for us, for the first six months of this year, our market was mainly SUVs and that segment has grown.”

In the first half of year the company did an EPS of about close to Rs 35. “For the year, we expect EPS of Rs 65,” Vijayakumar said.

For full management commentary, watch the video.

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(Edited by : Dipikka Ghosh)