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May 29, 2018 03:39 PM | Aviation

Looking to increase machining capacities in aerospace business, says Walchandnagar

We are looking to increase machine capacities in aerospace business, said GK Pillai, Managing Director and Chief Executive Officer, Walchandnagar Industries.

"We have already done some small expansions in the aerospace business. We are looking at increasing some of the machining capacities in-house to meet Indian Space Research Organisation's (ISRO) requirement. ISRO is looking at increasing the number of satellite launches to 12-18 per year and we are gearing up ourselves to meet those requirements," said Pillai.

For the last four years, on profit before tax (PBT) basis, the company has been making loss and in Q4, we had a positive PBT of more than Rs 2 crore, he said.

Talking about funding from US private-equity giant KKR & Co, he said, “We had Rs 237 crore funding from KKR and we have repaid all the term loans that company had with State Bank of India, IndusInd Bank and Bank of India. So, we do not have any term loans with any of the bankers today. It’s only the working capital what we have."

"We have a working capital of almost Rs 350 crore, which we still would like to use it. We are planning expansion in defence and aerospace business, similarly on the nuclear front,” he added.

“We want to have FY19 as a year, where Walchandnagar is planning to turn around and becoming a profitable, from red to come back to the black and the team is working towards that," he further mentioned.

Walchandnagar Industries posted a mixed set of earnings this quarter. The company's revenue fell, while margins have nearly doubled on year-on-year basis.
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