No decision yet on restructuring: Kesoram_No decision yet on restructuring: Kesoram

No decision yet on restructuring: Kesoram

May 31, 2024

Kolkata: Kesoram is yet to decide how to restructure, a senior company official said today. This is because no progress has been made within the company as the core committee is yet to discuss ‘options’.

Speaking at the company’s annual general meeting, Kesoram vice-chairman Manjush Khaitan said, “No progress has been made on the reorganization.”

She declined to say when the three-member committee would submit a timeline for the much-needed restructuring report.

Kesoram recently informed the exchanges that a three-member committee will be formed to oversee Kersoram’s “restructuring and reorganization.”

The committee will consider the entire scope and not just the tire or cement business areas, Hettan said.

Responding to speculation that the company will crack down on the tire business to raise resources to reduce debt, company executives said it is still too late to speculate on whether the company plans to divest any of its components.

The company told shareholders that the reorganization is aimed at reducing its huge debt.

Kesoram is carrying a huge burden of Rs 57,283 crore as finance costs dominate. The company expects a loss of Rs 4.8 billion in 2013-14.

The net profit from the tire business declined by 12% to Rs. 309.2 crore and the contribution from the cement business declined to Rs. 309.2 crore. 2012-13 achieved a revenue of 1, 702 crore dollars in the year as compared to the year.

Chief Financial Officer (CFO) T K Das, in a reply to shareholders, capacity utilization was low as the company was focusing on profitability rather than size.

He said that the company is now aiming to improve capacity utilization of tires.

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