HD KHUNTETA - cost of borrowing may go down by 50 bps

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HD KHUNTETA, Director Finance of REC

Source: CNBC

Post rate cut, cost of borrowing may go down by 50 bps 

AAA bonds were earlier quoting at around 9.65 now the rates have come down to around 9.45 so there is a reduction of 20 bps. Naturally, REC will be able to raise funds lower by around 20 bps compared to what we have raised earlier.

At the same time, in 2011-12 we raised Rs 30,000 crores from the market and our cost of borrowing was only 8.20

If the trend of increasing the tariff continues for the current year, 24 states have already increased, UP is also likely to increase by 33% that will be sufficient to service the interest payment and the repayment of loan of the financial institutions and banks.

In 2011-2012 we made a provisioning of Rs 49 crores and in the current year also, a further 10% of the provisioning is to be done. As far as the discoms are concerned because of the increase in tariff, I am confident that they will make the payment in time and that there is no need to make any further provisioning on account of any delay or NPA from the discom sector.

Compared to the fourth quarter of 2010-2011, the results would be better for 2011-2012. This would be due to the growth of the bottom line for the whole year by around 8.9%.

AK Jain, ED of IPCA Laboratories

Source: CNBC TV 18

AK Jain, ED of IPCA Laboratories

Eyeing 18-20% growth in domestic market in FY13 

Branded business in last five years has been growing by almost around 30% and this year also we had a similar kind of growth. In the next three to five years, we are looking for a very good growth in this segment. 

The business is driven by the CIS market and then the French speaking African market and then Lat-Am, so these three markets have done very well for us.

Domestic business is reviving. In last 5 years, we have been growing by 18-20%. 

This is the only year where our growth rate was very low at around 8% or so. From third quarter and fourth quarter we have seen good amount of business revival, so we will be around 18-20% kind of growth in domestic market in the current year.

This business on anti-malaria, particularly with WHO, has really done very well in last financial year. We did business of almost around Rs 300 crore from a base of around Rs 100 crore which was there a year before. 

We have right now one product approval from WHO, we are expecting a second product approval which may happen anytime in next three to four months.