Jindal Stainless is confident of 15% sales volume growth in FY19 with an upward potential and 20% increase in companies current capacity through debottlenecking, said Anurag Mantri, CFO, Jindal Stainless.
Jindal Stainless posted a mixed set of Q4 results. While the operating profit saw significant growth, margins declined.
The current capacity utilisation stands just below 100%, said Mantri, adding that most of their plants have world class facility, which could help them debottleneck and the capex to would be minimal.
The company may also look at further capex subject to approvals from various regulatory authorities.
“With a minimal capex of just Rs 450-500 crore, we have the potential of doubling the melting capacity from 0.8 million tonnes to 1.6 million tonnes by FY20,” said Mantri.
He also said that the capex will not be funded through debt, but will be done through internal accruals or through equity infusion. In fact, the company expect to repay Rs 800- 1000 crore of debt in FY19. In FY18, the company repaid Rs 900 crore of debt, said Mantri.