Diamond Power Infrastructure Monday clarified with regards to various speculative rumors about its accounts turning into non-performing assets (NPAs). In a notification to the stock exchange, the company said that all bank accounts of the company are standard and are not declared NPA by any bank.
Speaking to CNBC-TV18 on the issue, CFO Bhagwan Makhijani said that none of the accounts of the company are NPAs. According to him, the loan payment was delayed by one-two months but has not defaulted. All delayed payments have been made, he added.
The power equipment manufacturer has a debt of around Rs 1,200 crore and is likely to reduce it through QIP going ahead. Below is verbatim transcript of the interview:
Q: Can you clarify whether there are any loan problems? What is your total debt, what is your annual interest outgo?
A: I again reiterate as per the information or clarification sent to the stock exchanges that none of the accounts are non-performing assets (NPAs). There were some delays but as on date, none of the accounts are NPAs.
Q: Why were there delays? And how much was it, was it one month, two months?
A: It was basically between one and two months but subsequently all the payments have been made.
Q: What plans do you have to reduce your debt in the next one year?
A: We have various plans, one is going for qualified institutional placement (QIP). As such our debt coverage ratio is quite good. It is about 1.8 and so, there is no immediate need but we have plans for the QIP for which we have board permission also and the document is ready. We are waiting for an opportune time and that should help.
Q: What is your revenue growth expectation for the second half?
A: I am not authorised to give any forward looking guidance.
Q: Your investors will want to know whether you will be solvent enough to pay your interest outgo?
A: We would be able to pay the debt. Our normal growth rate is expected to be about 15 percent because the expansion would come up only next year and then the turnover and the inflow would increase.
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