The final sanction from most of the lenders, rescheduling the repayment, to start from the quarter-ending March 2005, has been received by the company.
The scheme envisages allowance of a moratorium on the term loan of Rs 36.34 crore so as to start repayment from March 2005 onwards and end in March 2010. The other details include reduction of the rate of interest on term loans and working capital loans to 12 per cent, enhancement of fund-based and non-fund based limits and the conversion of 50 per cent of the working capital limits to FCNR(B) and 25 per cent to commercial paper with standby support.
The company has managed to achieve an interest rate reduction of 1-2 per cent and has been replacing short-term loans with long-term loans, according to Bajaj Electricals president and COO R Ramakrishnan.
The company, which has managed a turnaround for the second quarter of the current financial year, at a profit before tax of Rs 2.78 crore as compared to a loss of Rs 2.67 crore in the same period last year, attributed the profitability to the closure of the loss-making die casting operations as well as improvement in the capacity utilisation at the new Ranjangaon unit.
We will turn around Ranjangaon in the coming year. The capacity utilisation has gone up from 60 per cent to 80 per cent, according to Bajaj Electricals chairman and managing director Shekhar Bajaj.
The 30,000 tonne per annum capacity plant, set up at an initial investment of Rs 45 crore, is currently implementing a Rs 40 crore deemed export order from PowerGrid Corporation. This will be executed by the end of the current year, Mr Bajaj informed.
Another order of high mast towers of 15,000 tonne of around Rs 40 crore is expected. Bajaj Electricals has also achieved success with its business restructuring initiative with the various strategic business units fans & luminaires, appliances, engineering & projects and lighting registering revenue growth during the first six months of 2003.