Re funds preferred due to pre-payment clause: Everest Kanto

Prem Khurana, CMD, Everest Kanto Cylinder, says that the company was able to raise fund easily due to good track record. The company preferred the rupee line because of the availability of the prepayment clause.

Below is the edited transcript of his interview to CNBC-TV18. Q: Have you managed to refinance your FCCBs easily? Do you have any funding needs in the near-term?
A: Due to our good track record we were able to get funds easily. We could manage both the dollar and rupee line but we preferred the rupee line because of the availability of the prepayment clause. Q: How does this increase your interest outgo every year?
A: Our interest outgo increases between Rs 25-27 crore a year. Other than working capital we do not have any major loan on our books. Q: Last several quarters were difficult for your company because of gas availability? In the first quarter you had net loss. Will you be able to service this extra interest cost? How long will there be red ink on your bottom-line?
A: Generally, the loss was M2M because of the foreign exchange loss. Our cash accruals and our profits have not picked up because the Middle East markets were bad but we are hopeful that now they will pick up. We have presence in other markets, so servicing this interest will not be an issue. Q: In the Q1 your income fall fairly 40-50 percent, where your income came down to Rs 125-130 crore. Do you see that continuing?
A: We don't expect it to continue as we have better avenues now and they will move up. We don’t expect to go down from this level. We will be back on our feet in next one or two quarters. The markets are picking up. Q: Your earlier guidance was about 20-25 percent growth. Do you continue to maintain that?
A: We will definitely grow at a reasonably good rate of around 20 percent.