In a bid to boost manufacturing and shore-up job creation, the government announced the expansion of the production linked incentive (PLI) scheme to the textile sector. Amit Agarwal, Group CFO of Raymond said that the scheme will bring importance to the sector.
However, he said that as a company, Raymond will not be a direct beneficiary of the PLI scheme.
“The PLI scheme is important for the textile sector. It reflects how the government and the whole economy is viewing the textile sector. So, it will have a rub-off effect. It will not impact us because it is based on the investments to be made and the incremental revenue. Overall, it will help the textile industry which is good for all of us,” he said in an interview with CNBC-TV18.
On the non-convertible debentures (NCD) allotment, Agarwal said that they have been allotted to the third party and not related party promoters. He also said that the NCDs will deleverage the balance sheet.
“NCDs were allotted to third parties and has nothing to do with the promoter. These NCDs are on a long term basis and the philosophy of the company is clearly on a path of deleveraging as we have demonstrated in the third-quarter numbers. If you see the nine months numbers, we have been able to reduce the net debt by over Rs 230 crore. This reflects our philosophy that we want to deleverage,” he said.
He also said that recoveries have been good in Q3 and revenues have gone up close to Rs 1,300 crore. He also remains bullish on the upcoming summer wedding season.
“We see the summer wedding to be a strong point. We just had a wholesaler meet and we got a very good response from all those guys. We are very bullish about the summer trends,” he said.Watch the video for more.