In an interview with CNBC-TV18, Arun Agarwal, ED, Suryajyoti Spinning Mills, said that the company aims to maintain year end EBITDA margins at around 50%. It is also looking to bring in additional capacity of 25,000 spindles by the next financial year.
Talking about the company's preferential issue he said," It is a preferential issue which carries a coupon and the coupon rate has not yet been decided. It will be decided in the forthcoming board meetings." Below is the verbatim transcript of Agarwal's interview with Latha Venkatesh and Gautam Broker of CNBC-TV18. Also watch the accompanying video. Q: You had an EGM where you had decided to issue shares on a preferential basis, is it to promoters? How much money are you raising and when? A: The EGM that was held for the preferential capital was not exactly for promoters. The promoters, close associates and some others who are interested in this kind of a fund raising in the company, which helps in increasing net worth of the company. Q: How much do you bring in and is it just the common share or a preference share? A: It is a preferential issue which carries a coupon and the coupon rate has not yet been decided. It will be decided in the forthcoming board meetings. Q: Yarn price has been doing well and which is why perhaps Suryajyoti has been doing very well in the secondary markets, but somehow your margins had declined in Q3, just about 11% versus 15%, do you expect them to improve going forward? A: The margins have been volatile. We expect to maintain it around 50% of EBITDA for the year ending. This is because the turnover of a company has gone up and we expect to complete the year with Rs 400 crore we will try to maintain EBITDA at around 15-16%. Q: What will be your equity dilution when you issue the shares? When is your capacity of 25,000 additional spindles coming in? A: The additional 25,000 should come in next year. Q: Which month? A: It should take about 8-9 months. It should come through by the next financial year.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
