Aim to reduce debt cost; net debt at Rs 13k cr: Hindalco

Non-ferrous metal player Hindalco Industries plans to reduce debt cost of the company and is contemplating various options, D Bhattacharya, MD, Hindalco told CNBC-TV18 said.

The company’s current net debt stands at Rs 13,000 crore, while its debt equity ratio is well leverage at 0.34:1. The company today posted a jump of 7 percent in its fourth quarter net profit year-on-year to Rs 482 crore on higher other income. Its net sales fell higher-than-expected 8.6 percent Y-o-Y to Rs 6,915 crore during January-March quarter. Below is the verbatim transcript of the interview Q: Just take us through the current debt on books and are there any plans to deleverage the balance sheet inorder to bring down debt or are you comfortable with the debt equity proportion currently?
A: Debt-equity is at a very comfortable level, 0.34:1, so we are very comfortable. It is the debt that you know, the gross debt is Rs 20,000 crore and our treasury size is Rs 7,000 crore and therefore the net debt is Rs 13,000 crore. Rs 13,000 crore is quite manageable and the cost of debt is on the higher side, so we are planning as to how to reduce the cost of debt and thereby the interest rate. Q: If you look at refinancing debt what are the options that you are looking at in terms of currency, in terms of bonds? Could you take us through the plan or the option that you have in front of you?
A: All the plans and all the opportunities are available. We will evaluate them and we will take the appropriate steps which will give us the maximum demand and maximum return on that.