Uttam Galva group confident of turning around Lloyds Steel
"We are confident of turning around the company. We hope that Lloyds Steel will attain net profit level in next one year and its EBIDTA will be doubled in that period," Deputy Managing Director of Uttam Galva Steels, Ankit Miglani told reporters here.
Uttam Galva Group, promoted by Migalni Family, has acquired 58.35 percent stake in Lloyds Steel, which posted net loss of Rs 213 crore in the last two financial years. Lloyds Steel, with a steel making capacity of 1 million tonne per annum, has a total long-term debt of Rs 441 crore on its books.
The company's board has now been reconstituted after the takeover by the Miglani family, though the erstwhile promoters would continue to hold their stake at about 21 percent for now.
Talking about the revival strategy for the company, Miglani said, " Lloyds Steel used to raise money for working capital from secondary and tertiary market which increased its cost of funds to 24-25 per cent. Post-acquisition, we are planning to raise working capital from public sector banks, which will significantly reduce the cost of funds."
He also said it has already started discussions with the some PSU banks and expects to get a letter of credit worth Rs 1,500 crore.
"We will also increase the operational efficiency with better product mix,"
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