Tag: Interviews

Deregulation of motor third-party premiums will have a big impact, says New India Assurance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Q&A Transcript of Neerja Kapur, CMD, New India Assurance Co

Q: What’s happening on a business-on-the-business side? Premium growth in the last two quarters came down from 15 to 18 percent levels now to between 5 and 7 percent. This is lower than what the industry growth has been or what the peers have achieved. Could you tell us what’s currently happening and what could FY23 growth and beyond looks like?

A: India is one of the fastest growing economies in the world having clocked about 5.5 percent average gross domestic product (GDP) growth over the past decade. Economic growth in India is estimated to grow at about 6.9 percent in 2022-2023. And with a proactive set of administrative actions taken by the government, a flexible monetary policy, softening of the global commodity prices, also supply chain bottlenecks, we’re seeing them moving of, inflationary pressures have eased to some extent in India. So three mega trends, global offshoring, digitalization and energy transition are setting the scene for a good economic growth in the country as compared to the rest of the world. India has emerged as the fastest growing major economy in the world.

Q: In terms of New India Assurance itself if you can be a little specific in terms of what can we expect in terms of premium growth, as I pointed out, that has slowed down meaningfully, what’s your own understanding of how the numbers will progress from here?

A: We see a very good growth in the motor segment. And with the new vehicle sales showing a very healthy trend, we see the automobile sales increasing across all categories, and three of our biggest original equipment manufacturers (OEM) partners that is Maruti, Hyundai and Tata Motors, their sales are also at an all-time high compared to the previous year.

Health business continues to grow at a very healthy pace. And the predominant reason being the pandemic, which has made everyone more aware of life’s uncertainties.

We’re also seeing a lot of push from the IRDAI to cover the missing middle and a lot of action is happening in this scene.

Property is also witnessing a much better traction compared to the recent years.  It is mainly driven by the demand from residential and commercial segments. So, going forward too, we expect health and motor to be the key growth drivers and there is a lot of scope for innovative products. And New India Assurance as a company is targeting growth without compromising on our bottomline (the profit). We’re trying to increase our revenue but not at the cost of our margin.

Q: Since you’re talking about good growth in the motor segment, I wanted your thoughts on two things. One is deregulating the motor third party premium and the other one is making Accident Insurance mandatory.  How would this really affect or change your growth prospects?

A: This will really impact the segment and we expect to see a huge growth in the motor sector. In fact, we are seeing the motor segment growing at an extremely good pace. Like I mentioned earlier the automobile sales are increasing and the deregulation in the sense that all the companies are targeting the dealer business and getting our OEM partners – Maruthi, Hyundai and Tata Motors, whose sales are also at an all-time high. So we expect the segment to grow in a very healthy pace.

Q: Two things – one on the premium growth side, what should we expect over the next year out? Would you get back into the 15 percent or more kind of premium growth?

A: I would say yes. The industry as such is possibly growing in that segment. We are seeing till November, the growth in sales of the entire industry is at about 15 percent. Like I mentioned New India is focusing on growth with profitability only. So, we are focusing on the segment which would be less risk prone. And so, our growth would be or rather I would estimate it to grow in the range of about 8-10 percent.

Q: Quarter two combined ratio was at 121 compared to 130 in the previous quarter. This has also dropped to 109. Could you tell us where is this jump coming from and when can you get back to the 110 kind of levels?

A: Our combined ratio has shown an improving trend in the last few quarters. Like I mentioned, we are focusing on the profitable lines of business and we are trying to price the policies at the correct price rather than just focusing on discounts. So, you would definitely see a profitable growth and so, the combined ratio will be coming down in the quarters to come.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nava’s subsidiary MCL reaches agreement with ZESCO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”NAVA” isinid=”INE725A01022″ bseid=”513023″ nseid=”NAVA” sector=”Diversified” exchange=”nse”]

Nava’s step-down down subsidiary, Maamba Collieries Ltd (MCL), has been pursuing international arbitration against Zambia Electricity Supply Corporation Ltd (ZESCO) for outstanding receivables.

The arbitral tribunal has issued a consent award, and as per the award, ZESCO shall, by August 2023, discharge the outstanding and overdue arrears aggregating to about $518 million.

“This is a consent award issued by an international arbitration tribunal based in London,” Sultan Baig, chief financial officer at Nava, earlier known as Nava Bharat Ventures, said to CNBC-TV18.

This award means that both the parties, MCL and ZESCO, have agreed on bilateral terms on how the debt will be disposed of over the next course. So it cannot be challenged further.

According to the settlement agreement, the money due to MCL will come in tranches. “ZESCO has agreed that the entire money will be settled towards the end of August 2023. It will come to a designated escrow account,” he said.

Out of this $518 million of outstanding receivables, about $70 million will go towards the payment liabilities of the government of Zambia. “From the balance, over $220 million will go for the repayment of the outstanding overdue principal amount to the lenders. Balance amount will be available with the company and the board will take a suitable decision when the right time comes for the utilization of this fund,” he explained. The balance overdue receivable will be $227 million, which is net of tax.

On the standalone entity, Nava, the debt is around Rs 100 crore. Overall debt as of today is $412 million. “Once we get the arbitration proceeds, we will be able to retire almost 50 percent of this debt and for the balance 50 percent, we will be in touch with lenders to see if we can reach some kind of settlement to restructure the debt and to make it in line with the revenue receipts,” he said.

The stock surged 9 percent. It was up 19.95 percent in last week and 22.24 percent in the past month.

For the entire interview, watch the accompanying video

Catch the latest stock market updates with CNBCTV18.com’s blog

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

LTIMindtree says 25 clients facing tech budget stress but none have spoken about cuts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”LTIMindtree” isinid=”INE214T01019″ bseid=”540005″ nseid=”LTIM” sector=”Computers – Software” exchange=”nse”]

At least 20 to 25 strong clients of technology consultant  LTIMindtree are currently facing some amount of budget stress, though no financial impacts have been seen so far with respect to its business, according to LTIMindtree’s Chief Financial Officer Vinit Teredesai.

“Out of our 700 plus clients, 20-25 are probably having certain amount of budget stress at this point of time. But there is no impact the company is seeing at this point of time with respect to budget cuts,” he said in his first media interview since listing of the merged entity on 5th December.

There is a general sense of cautiousness on the IT budget, so everybody is watching the space. “But we are not seeing any reductions or cuts that are coming our way that are significantly impacting our plans as far as the calendar year 2023 is concerned,” he said.

Regarding the quarter three furloughs, he said they are not unusual. However, it is not something that is significantly damaging the growth trajectory of the company. On quarter on quarter (QoQ) as well as on year on year (YoY) basis, the management anticipates a decent and industry leading growth.

Also Read: LTIMindtree shares allotted — Peer comparison, swap ratio and risks

“As far as our full year target for FY23 is concerned, we still believe we are on track to achieve the industry leading profitable growth,” Teredesai said.

He does see furloughs in some pockets of the industry but not across all the companies or sectors. “It is specifically into BFSI sector,” he said.

On an overall note, the company is doing reasonable growth in quarter three and quarter four.

Travel vertical of LTIMindtree remains very strong. Healthcare segment is also doing very well. So the company is confident that it is not a structural change that is happening, it is only a cyclical impact that has been seen at this point of time.

However, the company is anticipating a 100 basis points (bps) impact on margins due to a one-off cost.

LTIMindtree also doesn’t see any major changes in the hiring trends. “We want to assess the overall demand. We don’t want to overhire but there is no change as far as our hiring plans are concerned and we will continue to hire,” he mentioned.

When asked if any acquisitions are on the anvil for FY24, he responded saying that the company always continue to evaluate the opportunities available in the space.

For the full interview, watch the accompanying video

Catch the latest stock market updates with CNBCTV18.com’s blog

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Wilmar looking at stressed assets in staples for inorganic growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”Adani Wilmar” isinid=”INE699H01024″ bseid=”543458″ nseid=”AWL” sector=”Consumer Food” exchange=”nse”]

Acquisition process is a continuous evaluation that Adani Wilmar keeps on doing, said Angshu Mallick, MD and CEO of the company, while speaking to CNBC-TV18. He believes stressed assets are better buying options.

“We keep looking at stressed assets, organisations or brands. We are in staples, so anything in staples, we are surely looking at stressed assets,” he said while speaking with CNBC-TV18.

Fortune and Kohinoor are two strong brands Adani Wilmar has in the market along with the distribution network across the country. “What we need is assets to ramp up our production fast,” he said.

The company has set aside around Rs 500 crore for acquisition and around Rs 1,900 crore for capex.

However, he mentioned that the company would put in more money from internal accruals as Rs 500 crore may not be enough to buy the assets or brands that the company wants.

The dip the company saw in quarter one and quarter two wasn’t based on the volume, it was based on prices, he said.

“We have seen good consumption for the marriage season. We see great opportunity for basmati rice and edible oils,” he said.

The company has seen some dip in consumption in rural areas, particularly edible oil. “Forty percent share has come down to 38-37 percent. So, around a 2 percent dip has been seen,” he said.

In foods, Adani Wilmar continues to hold 25 percent share in the rural market, which is a healthy sign for the future, according to Mallick.

Also Read: From Harsha Engineers to Adani Wilmar to LIC: Here’s a look at the most to least chased IPOs of 2022

The company is seeing good consumption for the wedding season. So, the CEO sees a great opportunity for the basmati rice and edible oil business.

“In edible oil, we see an increase of around 8-10 percent in volume,” he said.

He is hopeful of seeing good signs of growth from December onwards. “January onwards, the real thing starts. So quarter four of this year and quarter one of next should be a big one,” he mentioned.

According to him, overall agricultural business looks better. Agri crop and the remuneration on the farm output has been good.

For the full interview, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Berger Paints sees the rural markets starting to recover

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”Berger Paints” isinid=”INE463A01038″ bseid=”509480″ nseid=”BERGEPAINT” sector=”Paints & Varnishes” exchange=”nse”]

Berger Paints, which has seen its rural market share slightly falling in the last couple of quarters, says it is gradually improving.

“Our sales in the rural markets have been gradually improving and I think that it should improve further going forward,” said managing director Abhijit Roy in an interview. 

Paint industry has been a competitive industry so companies had been losing bit of a market share in the past. However, the players should be looking at restoring that back, he said.

The company’s current market share is about 18.8 percent and Roy is looking at pushing it upwards, towards 20 percent in the next one-two years. “If we can do that, that will be good,” he said.

“Overall, we think that we should be able to gain a little bit of market share,” he said.

Growing faster than the industry is Berger Paints’ objective, he said.

Crude oil prices have seen a big slide. The peak level of brent crude prices was about $140 per barrel and now it has almost halved to $77-78 per barrel, flat on a year-to-date (YTD) basis, the lowest level that has been seen in this year. This should be positive for a company like Berger Paints.

Also Read: Berger Paints hopes to see a turnaround as raw material prices cool off

While posting its quarter two results for FY23, the company had indicated that softening raw material prices should aid profitability in quarter three as well as quarter four of FY23.

“Prices are softening a little bit. The effect will probably be seen in quarter four. So quarter four margins will move upwards considerably,” he said.

Also Read: Berger Paints eyes Rs 10,000 crore in revenues aided by margin, new products

Last year, the company had taken the price increases in October, November period. Therefore the volume-to-value gap is almost negligible. In the current quarter, the base was high because of the price increases, there was a delayed withdrawal of monsoon impact as well. So quarter three has been relatively soft in terms of the growth that has been seen by the company so far.

For the full interview, watch the accompanying video

Catch all the latest updates from the stock market here

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DreamFolks partners with Vidsur Golf to provide customers access to 250+ golf courses in Asia Pacific

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”Dreamfolks Serv” isinid=”INE0JS101016″ bseid=”543591″ nseid=”DREAMFOLKS” sector=”Aerospace & Defence” exchange=”nse”]

DreamFolks Services, India’s largest airport service aggregator, has entered into a strategic partnership with Vidsur Golf, one of the foremost and leading golf privileges providers. This association will give DreamFolks access to over 250 golf courses across India and Asia Pacific.

This partnership is also expected to add some ancillary revenue to the company. While discussing this new partnership, Balaji Srinivasan, Executive Director and Chief Technical Officer at Dreamfolks said that this is a very new service. “This is the benefit that is given to the premium card holders. Partnership with Vidsur Golf will offer the customers an access to over 250 golf courses across India and the Asia Pacific,” he said.

Getting into the ancillary services and creating an alternate portfolio for the customers was the thought-process behind launching this new product, Srinivasan said.

Also Read: Vodafone Idea’s validity period for OCD issuance to ATC Telecom lapses

The bulk of the revenue, for the company, comes from the lounge offering and other airport services. As this is a new product offering, it will take a few quarters to settle in and start providing some revenue numbers.

Srinivasan sees a good traction as the number of golfers and the interest in the sport is growing.

The company plans to maintain the same amount of profitability across all its portfolio.

“We should be able to continue to do 12-13 percent EBITDA margins,” he said.

For the full interview, watch the accompanying video

Catch market highlights with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Only way to develop Mumbai is through redevelopment, says Irfan Razack

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”Prestige Estate” isinid=”INE811K01011″ bseid=”533274″ nseid=”PRESTIGE” sector=”Construction & Contracting – Real Estate” exchange=”nse”]

Prestige Group is executing some redevelopment projects as the CMD, Irfan Razack, of the company believes that redevelopment is the only way to develop Mumbai.

Redevelopment as a theme has come back in the real estate market. There is a shortage of land in Mumbai. “The only way to get the raw material, which is land, is redevelopment,” he said.

There are many societies, which have become old-aged over a period of time and this is the opportunity as many redevelopment proposals keep coming to the company on a daily basis.

Prestige is evaluating it on a one-to-one basis and is doing a few of the redevelopments. “It is working but it is a long process. It takes its own time,” he mentioned.

Also Read: Prestige Estates will launch more flats after Mumbai sales boost firm’s average price realisation

Prestige Group did not participate in the Dharavi redevelopment project. “We are still infant in the Mumbai market and we don’t want to go in crashing there. We are trading ourselves softly in Mumbai,” he said.

Also Read:  Adani Group clinches Dharavi redevelopment project with Rs 5,069-crore bid

The company is doing things in a measured way and doesn’t want to get itself into something that is too much to handle, he added.

While assessing the impact of rising interest rates he said, interest rates going up is a concern because it is also a matter of affordability.

The Prestige Estates stock has been under pressure, it is down 16 percent from its 52-week high.

For the full interview, watch the accompanying video

Catch the latest stock market updates with CNBCTV18.com’s blog

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Metro Brands sees premium segment demand on the rise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”Metro Brands” isinid=”INE317I01021″ bseid=”543426″ nseid=”METROBRAND” sector=”Footwear” exchange=”nse”]

One of the largest Indian footwear and accessories specialty retailers, Metro Brands, is seeing business normalize as premium segment demand continues to rise.

According to Nissan Joseph, Chief Executive Officer at Metro Brands, segments over Rs 3,000 are growing considerably, which speaks of the premiumisation that Metro Brands is pushing towards.

This also indicates that the consumer is willing to adapt their buying habits to where the prices are going.

“We did see some pressure on those below Rs 1,000 primarily because there was 700 basis points (bps) raise in the goods and services tax (GST),” he added.

However, the company will be lapping that as well in the next few months.

“We are seeing business normalize and as it normalizes, we are pleased to see where it is settling into,” he said.

Also Read: Metro Brands shares drop despite 50 percent jump in net profit; Here’s why

Metro Brands has opened close to about 28 stores in the first half of the year and is on pace to open around 260 stores in the next three years or so.

“We believe this pace will continue through the rest of the year. So we should close out the year with somewhere between 80 and 100 stores, which would put us on pace to open 260 stores that we said we would do in the first three years after listing,” he said.

Also Read: One of India’s top shoe makers says people shopping online have moved beyond discounts

People are shopping, there is a little bit of pent-up demand, wardrobe refreshes. “We are happy to see that demand continues to remain consistent against our expectations,” he said.

For the entire interview, watch the accompanying video

Catch the latest stock market updates with CNBCTV18.com’s blog

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exports revival will start from fourth quarter, says Steel Strips Wheels

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”Steel Str Wheel” isinid=”INE802C01033″ bseid=”513262″ nseid=”SSWL” sector=”Auto Ancillaries” exchange=”nse”]

Steel Strips Wheels had earlier scaled down its exports guidance for FY23 to around Rs 450 crore from Rs 600-650 crore given the weakness in the global markets.

However, in quarter four of FY23 the revival of exports will start and this number will go back to the numbers of financial year 21-22 in financial year 23-24, said Mohan Joshi, Head-Corp Strategy & Investments at Steel Strips Wheels.

“Next financial year we will have exports of alloy as well as exports of steel wheels back and we are fairly confident that we will achieve the financial year 21-22 export numbers in financial year 23-24,” he said.

The company has reported close to Rs 4,000-4,100 crore revenue in terms of the topline. “Export markets still remain subdued and we are fairly confident that this nature of subdued demand will take an uptick coming into Q4 of this financial year,” he added.

Steel Strips Wheels has entered into a Memorandum of Understanding (MoU) with Isreal based Redler Technologies for developing, manufacturing and selling EV controllers.

It is an MoU of joint venture ratio of 51:49 where SSW will hold 51 percent and Redler Technologies will hold 49 percent.

Going forward, this opportunity is expected to scale up to the tune of $700-800 million in next three-five years.

Also Read: Steel Strips Wheels aims for 15-18% revenue growth in FY23

With the advance technology access with Redler Technologies, the company expects to have the first-mover advantage to completely localize the product and offer this product to all the EV-based original equipment manufacturers (OEMs) which are trying for transformation from the typical fossil fuel vehicles to EVs.

The industry size is expected to be in between $600 million and $700 million in coming three years. “We are fairly confident of grabbing a minimum of 25 percent market share,” he said.

For the full interview, watch the accompanying video

Catch the latest stock market updates with CNBCTV18.com’s blog

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Impact of steel export duty cut to translate by March, says Jindal Stainless

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The government has withdrawn export duties on most steel and iron ore products levied in May this year. The steel ministry says that the rollback decision was taken on the back of a steep fall in steel exports in October.

Vijay Sharma, Director, Jindal Stainless welcomes this consideration by the central government and believes that the impact of this duty withdrawal is likely to be seen in February or March.

“Export duty imposition was also very sudden and withdrawal is also very sudden. Though we are very happy with that, we are working on it. However, stabilizing the total supply chain will take a couple of months. So this financial year, the export volume impact – post this duty withdrawal – is likely to be seen in February or March,” he said.

CNBC-TV18 spoke to Union steel minister Jyotiraditya Scindia who said that time was right to remove steel export duty. “It is only after many iterations of discussions and very long deliberations that we arrived at the conclusion that we are in favour of lifting these export duties,” Scindia said.

He added that the steel industry was facing a lot of pressure on the pricing front. “We were apprehensive that commodity prices, also as international forecasters had put in place, may start rising again. So there will be multiple pressures on the steel industry with regards to pricing. So we were dynamically monitoring that and I had committed to the steel industry that we will take a view one way or the other in November, and through multiple deliberations we concluded on the view that the time has come now to remove this export duty,” he said.

As per the Finance Ministry notification, exports of iron ore lumps and fines less than 58 percent Fe will attract zero duty while exports of iron ore lumps and fines greater than 58 percent Fe will attract 30 percent duty. Export of iron ore pellets will attract zero duty.

Also Read: Industry welcomes export duty withdrawal on iron and steel items

The company is confident of maintaining the earlier guidance of EBITDA/tonne at Rs 18,000 despite global uncertainties as there is stability in volumes on the domestic front.

Overall debt of Jindal Stainless has been reduced by 40 percent in the last two years or so and it currently stands at Rs 2,750 crore.

However, the company is in the expansion mode. Jindal United Steel Ltd (JUSL) acquisition is, which is likely to happen within this financial year, will add about Rs 2,000 crore debt to the company’s existing debt levels.

So the total debt of Jindal Stainless by the end of FY23 will be at Rs 4,750 crore.

Sharma is hopeful that the merger will happen within this financial year.

Also Read: Steel export duty cut is good but not immediately, say analysts

For the full interview, watch the accompanying video

Catch all the latest updates from the stock market here

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow