Kolkata: Steelmaker Jai Balaji Industries expects revenue in 2009-10 to rise 15-20% on stable steel prices, a top official said on Wednesday.
“Steel prices are expected to remain stable at current levels. Our revenue for the current fiscal would grow by 15-20%,” Aditya Jajodia, chairman and managing director said.
It also plans to raise about Rs7.5 billion in the current fiscal for investment in existing and new projects, Jajodia said.
Last year, the company raised Rs7 billion, and this year it would require another Rs7.5 billion for funding existing and new projects.
“The funds will be raised via combination of debt and equity.”
The Kolkata-based company may also dilute its stake to raise money in the current fiscal, he said.
“Final decision (on fund raising) will be taken up by the board, but it might be a through the issue of rights, follow-on-public offer (FPO) or through qualified institutional players (QIPs),” Jajodia said.
The company, yet to announce its 2008-09 results, expects to earn Rs19 billion in revenues in the last fiscal.
It currently produces 1.1 million tonnes per year at its plants in the eastern states of West Bengal, Orissa, Jharkhand and Chattisgarh.
“We are experiencing a rise in domestic demand, and with 6-7% rise in gross domestic product (GDP), our operating margin should be at 15-17% in FY10.”
WEST BENGAL PLANT
The company expects to start construction of its proposed Rs160 billion integrated steel plant in West Bengal in another 3 months.
“We have the land in possession and we are expecting the environmental clearances in another 2 months. So the work should start in 3 months time,” he said.
“In the next two years, after the completion of the first phase of the plant, our capacity would increase to 3.25 million tonnes,” he added.
Shares in the firm ended 0.95% up at Rs164.55 in the Mumbai market that ended up 0.69%.