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May 29, 2012, 05.42 PM IST | Source: CNBC-TV18

Will raise Rs 250cr via ECB route next year: Hind Copper

Hindustan Copper has declared its fourth quarter results. Shakeel Ahmed, chairman and managing director says, the company would be raising about Rs 250 crore through ECB next year.

Shakeel Ahmed, Chairman & MD, Hindustan Copper

Hindustan Copper has declared its fourth quarter results. Shakeel Ahmed, chairman and managing director of Hindustan Copper says, the company has been able to achieve this financial performance primarily on account of improved physical sales. “The total sales were 31,000 tonne for the full year, about 17% higher than the pervious year. This along with the superior rupee price of copper has contributed to our earning and profitability,” he adds.

He further says, the company would be raising about Rs 250 crore through ECB. “As on date, we have more than Rs 700 crore of surplus cash. In the next year, we will require investable fund through external sources. So, our expectation is that we should be raising about Rs 250 crore through ECB,” he elaborates.

Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompanying video.

Q: Could you take us through your numbers?

A: We have been able to achieve this financial performance primarily on account of improved physical sales, which were about more than 13,000 tonne of refined copper in the last quarter. The total sales were 31,000 tonne for the full year, about 17% higher than the pervious year. This along with the superior rupee price of copper has contributed to our earning and profitability.

Q: Over the past quarter we have seen the copper prices correct. However, we saw the rupee depreciating as well. So, what kind of net-net impact are we looking at margins on those basis?

A: Our EBITDA margins were 42%, one of the best in the recent years.

Q: Could you take us through whether the divestment department has given any indication whatsoever about a rough 10% divestment plan that they have outlined in this particular year?

A: Not yet. The Cabinet note is under circulation and inter-ministerial consultation and a final decision is yet to be taken on that.

Q: What about your investment plans for FY13? Could you give us the amount looking to raise? There was talk of ECBs being raised. What are the funding options and what are the expansion plans that you have laid out for this particular year?

A: As on date, we have more than Rs 700 crore of surplus cash. In the next year, we will require investable fund through external sources. So, our expectation is that we should be raising about Rs 250 crore through ECB.

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