Plan to get out of red by end of the year: HCC

Though plagued by high interest costs and heavy debt in the books, HCC, group CFO, Praveen Sood explains to CNBC-TV18 on the occasion of the company's announcement of quarterly results, that the company is taking all efforts to turn positive by the end of the year.

Sood adds that he is optimistic of policy initiatives and enhancement of the economic environment by the government. Below is an edited transcript of the interview on CNBC-TV18. Q: High interest costs of Rs 128 crore have been weighing down operational profits. By when do you think the problem will be resolved and what is the current debt on the books?
A: As far as interest costs are concerned, the amount of is Rs 128 crore was expected because in 2011 the requirement according Schedule 6 was changed.
So now we present two figures, total interest paid and total interest received. So, a part of the interest received has been clubbed into the receipts and shown as other income, that’s why this figure looks larger.
The debt as on June 30 was in the range Rs 4,400 crore. As you know, the company has gone in for CDR and the CDR package was approved in June when the interest was rationalised and we hope that interest cost will be under control.
Obviously, interest cost will not come down below this level mainly because there is a moratorium of two-years from payment of loans. However, we will do our bit to bring the interest cost down. Q: What about the bottom-line? Do you see the company returning into the black in a quarter or two?
A: It’s very difficult to give guidance. The company per se doesn’t give any kind of indication. But we are taking all measures to break of out the red. It’s going to be gradual and hopefully by the end of year the results will be positive. But we also hope for changes in policy and environment from the government and we are optimistic.