Mr Anil Jain CFO of Adhunik Metalics said that that the debt level is likely to increase as we are planning to expand our power business. There might not be a significant reduction in debt but the overall debt to equity ratio will improve which will give comfort to investor and lender group.

Below is the edited transcript of his interview to CNBC-TV18.

Q - What is the progress on iron ore dispatch. What impact we will see this quarter?

A - Collum mine is operational from last month and dispatches have already commenced. We have already dispatched couple of racks to the plant which will lower raw material cost in current fiscal.

Q - How much saving do you expect from captive iron ore sourcing?

A - On quantity dispatch, saving would be INR 3000 to INR 3500 a tonne. When we multiply it by one lakh it will be around INR 30 crores.

Q - What is the current debt on your books and will you be able to further reduce it in FY13?

A - In steel business the debt is around INR 1,500 crore and at group level it is around INR 4,000 crore. The debt level is likely to increase as we are planning to expand our power business and at the same time we are also capitalising the business.

There might not be a significant reduction in debt but the overall debt to equity ratio will improve which will give comfort to investor and lender group.

Source - CNBC-TV18

(www.steelguru.com)