Srikalahasthi Pipes Ltd., (SPL) (formerly Lanco Industries), is likely to become debt-free during the first quarter of the current fiscal, said a top official.
“Our board had recently approved raising of funds up to ₹250 crore through qualified institutional placement,” said G.S. Rathi, whole-time director, Srikalahasthi Pipes.
“This money will be raised during the first quarter of 2017-18. Within the next few months, the company will become debt free. If you look at our balance sheet, we are already debt free in terms of term-loans,” he said.
The funds will be used for expansion of coke oven plant and increasing the capacity of its captive power plant at a cost ₹65 crore. And ₹150 crore to repay external commercial borrowing loan and buyer’s credit. The balance of ₹35 crore will be used for funding organic and inorganic growth, he said.
“This would help the company to further reduce the finance costs of SPL,” said Mr. Rathi.
Last year, SPL expanded the capacity of its plant at Chittoor from 2.25 lakh tonnes per annum to three lakh tonnes per annum at a cost of ₹100 crore. “We will start reaping the benefits of increased capacity from the current fiscal,” Mr.Rathi said.
For the quarter-ended March 31, 2017, SPL’s standalone net profit fell 31% to ₹31 crore due to a steep rise in prices of coking coal.
