Mumbai: India’s top stainless steelmaker JSL Ltd sees revenue growth of 20% to 30% in FY11, and expects to raise about Rs200 crore over next 6-8 months to fund project expansion, a top executive said.
The company, which is nearly doubling the capacity of its stainless steel facility in the eastern state of Orissa, has already raised Rs240 crore via qualified institutional share placement. “We will see 20-30% growth in topline for the next 2-3 years. Once our phase II starts - March 2012, then it will be much higher... because our capacity would have doubled by the time,” Arvind Parakh, director of finance, told reporters.
“We are expecting the stainless steel industry to grow at 10-11%,” he said, adding that JSL will increase focus on domestic markets and introduce more value added products.
JSL, which has about Rs1,580 crore in internal accruals for the Orissa project, had a net long-term debt of Rs5,560 crore as on 31 March and is looking to cut its cost of debt through hedging and foreign borrowing, Parakh said.
The company’s cost of borrowing stood at 9.5% in FY10 and it plans to bring it down by at least 100 basis points in the financial year-ending March 2011, Parakh said.
Shares of JSL closed down 0.64% at Rs115.90 in a firm Mumbai market.