There is a possibility of improvement in margins by 0.5 percent in the second half of fiscal 2021, said Anil Gupta, CMD of KEI Industries.
“EBITDA is 11.76 percent and PAT also improved to 6.7 percent. There is a possibility of improving margin by another 0.5 percent in the coming quarters,” he told CNBC-TV18.
He further added that the company is determined to improve cash flows by recovering payments stuck in the EPC business.
Gupta said that they will be reducing the EPC business to half of earlier operations.
“Our wires and cable business, working capital cycle has improved and it is better than last year. But the working capital cycle is increased because of the EPC business where the payments are very slow from the government companies, state government department as well as central government. That is the basic reason we will be cutting down on this business,” he said.
He further added that they are looking at improving the working capital cycle and reduction of debt.
“Our focus will be on recovery of Rs 250-300 crore additionally in next 3-4 months to improve our working capital cycle and cutting down further debt. Our debt is already very low and we want to make it almost zero or negligible by end of this year by improving cash flows on the EPC business,” he said.For more details, watch the video.