Sp Apparels Aim To Achieve Zero Net Debt Over Next 2-3 Years, Says Cmd P Sundararajan
SP Apparels’ stock price has risen over 40 percent this month and is buzzing in trading. CNBC-TV18 spoke with Company President and CEO P Sundararajan to learn more about the business outlook.
Shedding further light on the possibility of an expansion of the margin due to the extension of the reimbursement of state taxes and central levies (RoSCTL) for the textile sector, he said: “The RoSCTL has since been suspended. January 2021. Therefore, the last six months Benefits will be reflected in second quarter earnings, which would be around 4-4.5%. The company was actually building around 2-2.5% for the quarter, so an additional 2-2.5% will be gained over the next few quarters.
Sundarajan said margins in FY22 will increase by almost 2% and the company is considering ways to increase sales without adding major capital expenditures.
He added that since the company is not planning any major investments, it aims to reduce debt and wants to achieve zero net debt within the next 2-3 years. The company is still in debt of over Rs 200 crore but has managed to reduce it by almost Rs 42 crore.
He said the demand for baby clothing is very high and that over the next six months SP Apparels will look to increase its capacity to meet the demand.
The company also continues to maintain its revenue forecast of Rs 1,000 crore for fiscal year 23, he said.
For the full interview, watch the accompanying video
(Edited by : Bivekananda Biswas)
First publication: STI