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BK Birla Group company Kesoram Industries posted a net loss of ₹41 crore on a standalone basis for the quarter ended June 30, 2022, as compared with a net profit of ₹34 crore in the same period last year.
Revenue from operations on a standalone basis grew by a marginal two per cent at ₹822 crore during the quarter under review as against ₹803 crore same period last year.
Total expenses went up by nearly 19 per cent at ₹910 crore(₹762 crore) during the quarter under review, primarily on the back of a 49 per cent jump in power and fuel cost.
Bringing down the debt
Kesoram is looking to bring down the debt to ₹1,000 crore from the current ₹1,650 crore by the end of the current financial year or by first quarter of 2023-24. It is also looking to refinance around ₹400 crore of existing debt to reduce finance costs. The company is currently paying around 19 per cent interest to its creditors after resorting to a spate of borrowings to revive the company.
The company’s finance cost during the quarter under consideration came down by nearly 11 per cent at ₹104 crore (₹117 crore).
Some of the debt repayment would be done from internal accruals and the loan recast would be done via market instruments, P Radhakrishnan, Chief Executive Officer of Kesoram, had said recently. The company is, however, yet to firm up the relevant mechanism.
During the current fiscal, Kesoram would aim to bring about four per cent reduction on the outgoing interest rate, he had said.
The company is looking to ramp up cement capacity by around 36 per cent to 15 million tonne (mt), from the current 11 mt over the next two-to-three years. The company has clinker capacity of 6.4 mt. It also plans to add one mt capacity via debottlenecking over the next year entailing a capex of around ₹80-100 crore..
Besides, it is also looking to add another kiln at its existing unit that will add another 3 mt capacity over three years. This will entail an investment between ₹300- 500 crore and will mostly be funded internally.
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