To be out of corporate debt restructuring by early 2022; no big capex plan: Rolex Rings

On FY22 business, Hiren Dilipbhai Doshi, CFO of the company, said, “As far as our future businesses outlook is concerned, this year would be a quite significant remarkable year for our history of the company. This year definitely we would be reaching new milestones and something what we have achieved in 2019 definitely it would be much higher than that and even in terms of top line as well as in bottom line.”

He added, “In the overseas market, where we have significant presence, there we are getting quite good response for the products what we have newly launched or rather the products that we are supplying in terms of electric vehicles and in related segments. So definitely down the line, this current fiscal and FY23 we would be having quite good numbers down the line.”

On CDR, he said, “We were supposed to pay all other debts related to at a lower cost so that we have already repaid and quite well in advance we have repaid that debt and even in the March 21 we were complying all our obligations on time or before time. This current fiscal also as it has started with a long term debt of Rs 33.50 crore, which would be repaid by December 21 or early 22. So, we would be committing as per the repayment schedule.”

“We would be out of CDR by March 2022 and down the line we do not have significant plan of capex. So obviously the long-term debt raising plan is not there. We would be carrying certain working capital limits, which would be the routine part of our operations of the business and as we do have spare capacity in terms of forging and in our other value added processes so we do not foresee any significant capex down the line three years and as you said correctly, we are looking for our long term debt free company.”

On margins, Doshi said, “In 2019, we had an EBITDA touching 23 percentage, but two years down the line FY20 and FY21 as the entire economy or entire industry was under very much pressure and we had an issue as far as our capacity utilisation is concerned. So, definitely we had a hit on our margin. However, for the last six months, say from January 21 onwards, we would be having a quite good momentum in our top line as well as we are maintaining or we are surpassing something what we have achieved in 2019. So, there would not be any kind of margin pressure and we are not expecting any kind of margin pressure down the line because the business has picked up that momentum.”