DSIJ Mindshare

Kiri Industries surges on debt reduction plan

Kiri Industries has executed agreement for settlement of all its debts by the end of financial year 2016. The company’s total debt has been reduced from Rs 853.13 crore to Rs 410.62 crore. Its debt decreased by almost 51.87 per cent as compared to previous fiscal year. Kiri Industries’ repayment of the debt was done in initial installments. According to the company’s management, it will repay majority of the balance debt during FY17 in installments.

Kiri Industries will be able to save interest expense from current financial year. The company’s debt has been addressed majorly by the asset reconstruction companies, private lenders as well as NCD holders. It will help company to produce a better turnaround.

On financial front, Kiri Industries’ revenue increased by 4.95 per cent to Rs 297 crore in Q3FY16 as compared to same period in previous financial year. The company’s EBITDA too rose by 4.62 per cent to Rs 32.14 crore in Q3FY16 on a yearly basis. Its net profit boosted by more than three times to Rs 3.6 crore in Q3FY16, as compared to same period in previous fiscal year. After the debt reduction, Kiri industries finance expense may reduce from Rs 86.31 crore to Rs 43 crore from FY17.

Kiri Industries also streamlined its product portfolio. There has been a dramatic change in market situation related to intermediates and dyes, especially H. Acid and Vinyl Sulphone due to closure of leading manufacturing plant in China. The average price of H. acid and Vinyl Sulphone increased by three times and 50 per cent respectively. Kiri Industries has a installed capacity to manufacture 7200 MTPA of H. Acid and 18000 MTPA of Vinyl Sulphone.

The share price of Kiri industries increased by 14.35 per cent on bourses in early trades; and is trading at Rs 141.7 on an intraday basis.

Kiri Industries is one of the largest manufacturer and exporter of wide range of dyes, intermediates and chemicals from India. The company is a preferred resource centre for many of the most extensive product lines in textile dyes. It is an accredited and certified key business partner with world's top dyestuff majors across Asia-Pacific, European Union and Americas. Kiri Industries has set its footprint in over 50 countries across seven continents.

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