ANKIT MIGLANI - To cut debt with high margins

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ANKIT MIGLANI, Deputy MD of Uttam Galva
Source: CNBC TV 18

ANKIT MIGLANI, Deputy MD of Uttam Galva 

To cut debt with high margins, not land sale 

We have plenty of land at Khopoli. My intention is to keep expanding in that area. 

We are not in discussion with anyone at this point neither has anyone approached us for this purpose.

Our focus right now is to reduce debt by expanding EBITDA margins and by investing in downstream processes to improve value addition.

We have sourced supplies from Essar Steel who have also expanded capacity in the flat product segment. In addition, we have developed import sources to replace the volumes that we are losing out from Ispat.

On an overall basis, we have export considerable amount of steel, so the margins are better when the dollar is stronger than the rupee and that should offset any long-term implications.

We are operating at 10% margins but how it filters down the bottomline is debatable because the interest rate implication has changed over the past couple of years.

I expect the next fiscal year to be a lot tougher than the previous fiscal. But we will be able to sustain our EBITDA levels and margins due to the effort we are putting in to improve our profitability.