JSW has capex plan of Rs 6,000 crore in FY13
Vinod Dasari, managing director, Ashok Leyland, told NDTV Profit that the company is planning to make about 36,000 vehicles in FY13-14. “We are happy about the exports market that we have developed. Southern markets are seeing revival,” he added.
Private steel manufacturer JSW Steel has a capital expenditure plan of Rs 6,000 crore in the current financial year for expanding its steel capacity.
"Our capital expenditure plan for the current fiscal is around Rs 6,000 crore, of which Rs 3,500 crore will be debt and the rest will be through the route of equity," Joint Managing Director and Group CFO Seshagiri Rao told reporters.
JSW Steel, which has a 10 million tonnes steel plant at Vijaynagar in Karnataka, is currently under expansion phase to increase its capacity to 12 million tonnes.
"We hope to complete the expansion of Vijaynagar unit to 12 million tonnes by FY14," Chairman and Managing Director Sajjan Jindal said.
He, however, added that the company would not increase the Karnataka plant capacity to 16 million tonnes as planned earlier, until there is clarity on iron ore supply issue.
The company, which has around Rs 3,200 crore of cash reserve, has a gross debt-equity ratio of 0.98 percent by the end of March 2012. Referring to redemption of FCCB dues, Rao said, "The company has a strong balance sheet and redemption of FCCBs which is due in the near future will not be an issue."
The company had raised FCCBs of $325 million in 2007-08, which are due for redemption in the near future. "We had a margin of 17.3 percent in Q4 and 17.5 percent in FY12. We expect to continue to maintain the margin at the last year's level as we don't see drastic rise in input prices this fiscal," Rao said.
While iron ore prices are witnessing a downward bias, coking coal prices are not likely to rise significantly, he added. About the upcoming project in West Bengal, Jindal said the company is committed to it. "Presently, some rework is being done in the West Bengal project," he said.
JSW Steel produced 7.82 million tonnes of steel in the last financial year and aims to produce 9 million tonnes in the current fiscal.