CNBC-TV18 reported that Usha Martin stocks has seen a sharp rise on the stock exchange on good volumes. Mr Rajiv Jhawar MD of Usha Martin in an exclusive interview on CNBC-TV18 said that the company has not been approached by any of the global steel companies. He said that “We expect the operating margins, which have come down from almost 19.5% to 20% to 17% to go up to about 21% to 22% as we progress in the third and fourth quarters.”
Here is the verbatim transcript of an exclusive interview
Q. Can you tell us if you have any plans of bringing in a co-promoter or selling your stake of or selling the company itself either in part or in whole any time soon?
A - No, we don’t have any plans and I don’t think there is any need for raising any capital or getting any strategic investor in the company. We have no plans whatsoever at all.
Q. We have seen some increase in your input costs over 2009. Could you tell us how the dynamics stand in terms of the operating margins in your business as we have seen an increase in input costs and what kind of inventory or period of inventory are you holding?
A - We had a baggage of high inventory, raw material in the first and the second quarter, which is now almost over. I think now we are in the current levels of market price, raw material and selling prices. Going forward, we now expect with the start-up of our new capacity expansion, which has just been completed and getting commissioned and stabilized next quarter onwards we expect the volumes to go up by almost 60% to 70% once the new capacity gets fully stabilized. With our coal mines restarting early October, we expect the operating margins, which has come down from almost 19.5% to 20% to 17%, to go up to about 21-22% as we progress in the third and fourth quarters.
Q. Were you approached by any of the global steel companies including ArcelorMittal in their zest to get a foothold in India?
A - No, not at all. We have not had any proposal or any such discussion with either ArcelorMittal or any of the other steel players, not at all.
Q. But if approached, is that a proposal that you would consider?
A - Not at all. At this stage, I think we ourselves are a large player globally in our wire rope business, the second largest player. We ourselves would be looking at opportunities of expanding our business. At this stage, I don’t think we need to look at any international partner to help us grow in this business.
(Sourced from http://www.steelguru.com/news/index/2009/09/14/MTExNTg2/Usha_Martin_not_looking_at_selling_stake.html)
Sunday, September 13, 2009
Usha Martin not looking at selling stake
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