Expect to reduce debt to Rs 650 cr by end of FY21, says Godawari Power & Ispat ED

Abhishek Agrawal, ED of Godawari Power & Ispat on Thursday said that they expect to reduce debt to around Rs 650 crore by end of FY21. He also said that standalone, they would be debt-free in FY22.

“Our current debt level is around Rs 875 crore. By the end of this financial year, we are targeting to be somewhere around Rs 650 crore. In the next financial year, we should be able to bring it down by another 30-40 percent. Godwari Power Ispat on standalone basis will be debt free in FY22,” he said in an interview to CNBC-TV18.

On sales, he said that they could skew more towards exports going forward. He also expects prices to hold at around Rs 11,500-12,000

“In Q3 we were close to supplying around 70 percent merchant sale in domestic market and 30 percent for export. But looking at the demand in Indian market, this would change going forward. It would be 70 percent of exports and 30 percent of domestic market because exports are still strong. On prices, with China still being strong on the iron ore side, prices will be anything between Rs 11,500-12,000 going forward,” he said.

Agrawal said that there was a lull in demand a few days back, but the demand has returned.

“There was a little bit of lull 10 days back but China has come back strongly and usually they start buying before their Lunar New Year. So the demand has come back again and the China market is still very strong,” he said.

He also said that news of no duty on pellets was a big positive for the company.