Amtek Auto trims debt; sees $3 bn sales by 2015

Amtek Auto trims debt; sees $3 bn sales by 2015

Mumbai: Auto parts maker Amtek Auto Ltd has brought down its debt to about 3000 crore after it redeemed $250 million foreign currency convertible bonds, a top official said.

“We will repay a huge portion of our external commercial borrowings from 2013-2015," chief financial officer Santosh Singhi told Reuters.

“By 2015 we will almost become a net debt-free company."

Amtek Auto, one of India’s largest auto parts makers, also hopes to boost its revenue multi-fold to about $3 billion by 2015, helped by a robust domestic market, Singhi said.

“We have got enough capacity. We can multiply our sales from here without much capital expenditure, or acquisitions. We can go upto $3 billion," Singhi added.

He said there were no immediate plans to raise funds to boost capacity as the firm was trying to maximise its current capacity utilisation levels.

Though auto sales growth in India is slowing of late, there is still a shortage of supply from vendors due to supply side capacity constraints and the outlook for the auto ancillary sector is robust.

This fast-growing sector contributes some 2.3% to India’s gross domestic product (GDP) and is expected to clock sales of $30 billion in 2010/11.

The industry’s apex body the Automotive Component Manufacturers Association expects turnover to touch $110 billion by 2020.

Domestic sales make up about 80% of Amtek Auto’s overall revenue. The firm had reported consolidated net sales of around 3700 crore for the year ending June 2010. It is yet to report latest annual results.