![CESC's IPL connection won't hurt its balance sheet in any way: Sanjiv Goenka, Chairman](https://img.etimg.com/thumb/msid-50134108,width-300,height-225,imgsize-122721,resizemode-75/cescs-ipl-connection-wont-hurt-its-balance-sheet-in-any-way-sanjiv-goenka-chairman.jpg)
ET Now: One of your subsidiaries has won this IPL bid. Will CESC have to make any upfront investments for this move?
Sanjiv Goenka: None of my listed companies will be contributing towards this. So, if there are any losses at all in this venture, it will be picked up by me or my unlisted companies. No listed entity will be financially liable for any expense in this venture.
ET Now: That is an important clarification. But you have said that this venture will not remain under CESC for long too. It that is so, why did the bid happen under CESC's aegis in the first place?
Sanjiv Goenka: I really do not know how it was structured. But fundamentally, it is going to be structured as a company which will be held by different companies under the group.
To that extent, it will not be held by any one company. And it will not be held by CESC for sure. Let me assure you, there is no financial implications for CESC's balance sheet whatsoever.
ET Now: You are categorically saying that there is no outflow or inflow for CESC. So all these current assumption are incorrect, then?
Sanjiv Goenka: CESC will have no financial implication whatsoever because of this. CESC will have no financial implication arising out of football or cricket.
ET Now: In that case, why do it at all if there is no involvement? Why this announcement to the exchanges that you will be involved?
Sanjiv Goenka: I frankly do not have an answer to that. Somebody in my team has got to answer to me on that. As far as I am concerned, it is the group that bid and it is the group that won. That is the way it is.
I never look at the specifics of the hoarding structures. I do not know why it happened that way. I really have no answer to that.
ET Now: Will you be looking at any other ventures through CESC?
Sanjiv Goenka: No listed entity will be involved with any of these ventures.
ET Now: How are your other businesses shaping up? Q2 was a stable quarter for you, was it not?
Sanjiv Goenka: Yes, it was. I think things are looking better now. Haldia is operating exceedingly well.
We are still awaiting final clarification on Chandrapur, and once that happens things should become even better.
As of now, our performance is certainly getting better than before.
ET Now: How is Firstsource progressing? Where do you see it headed over the next 12 months?
Sanjiv Goenka: The last 24 months have been very decent for Firstsource, and I expect the next 24 months to be reasonably good too.
I believe that the first phase of consolidation is over. We have now started focusing on the top line. It may take a bit of time before we start getting orders, but the sales pipeline is the highest it has even been.
We have signed an in-principle agreement with a fairly large UK-based company for a pretty large contract. We are expecting that to mature into a full-fledged agreement. If that happens, it will stand us in very good stead.
Costs have turned considerably lower. I believe we are getting a better grip on the business. To that extent, I am pretty satisfied with the way Firstsource has shaped up.
ET Now: What about retail? Could we expect a breakeven in FY16?
Sanjiv Goenka: I do not think we will get to a breakeven in this financial year. The EBITDA figures differ from month to month. We hit it one month, but miss it in the next.
We need to ensure some consistently, which we hope we will soon enough. We now lead the industry in terms of operating matrices — revenue per square foot, cost per square foot, margins per square foot, etc. We just need a couple of good months on run.
But otherwise, it has been a good year. I think we are firmly on track.
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