homeearnings NewsIndia Cements: Target to reduce debt by Rs 500 crore by FY21 end, says N Srinivasan
India Cements: Target to reduce debt by Rs 500 crore by FY21 end, says N Srinivasan
India Cements is focussing more on profitability than volumes, said N Srinivasan, VC and MD of the company on Thursday. The cement major’s chief also added that there will be a total debt reduction of Rs 500 crore this year. In fact, From Rs 3,500 crore debt at the start of the year, India Cements has reduced Rs 300 crore in its total debt, bringing it to Rs 3,200 crore. The company is targeting to reduce debt by a total of Rs 500 crore by FY21 end, Srinivasan said.
India Cements is focussing more on profitability than volumes, said N Srinivasan, VC and MD of the company on Thursday. The cement major’s chief also added that there will be a total debt reduction of Rs 500 crore this year. In fact, From Rs 3,500 crore debt at the start of the year, India Cements has reduced Rs 300 crore in its total debt, bringing it to Rs 3,200 crore. The company is targeting to reduce debt by a total of Rs 500 crore by FY21 end, Srinivasan said.
“It was Rs 3,500 crore all put together. It has come down to Rs 3,200 crore. Another Rs 100-200 crore go in this last quarter,” Srinivasan said.
Elaborating on sales strategy during the pandemic, he said, “During this COVID-19 period, we decided that we will sell at our price. So if the volume fluctuates a little, it doesn’t matter, so long as my bottomline is good, our earnings are much better.”
India Cements has also cut its fixed cost substantially.
Srinivasan expects Q4FY21 to be better in terms of volume numbers.
“Total sales was 23.7 lakh tonne in Q3FY21 against 26 lakh tonne in Q3FY20. For the whole nine months, the capacity utilization was 50 percent. For Q3, it was around 62 percent. Demand pick up is there, we are able to see visibility, so this quarter should be better in terms of volumes,” he said.
Watch the video for the full interview
(Edited by : Ajay Vaishnav)
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