Financial Daily from THE HINDU group of publications
Friday, Mar 07, 2003
Financial Daily from THE HINDU group of publications Friday, Mar 07, 2003 |
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Corporate
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Outlook Widia expects to post net loss Our Bureau
BANGALORE, March 6 THE US metals major Kennametal Inc's local arm Widia India Ltd will report net loss in the current financial year, its new Managing Director, Mr Kumar Kanetkar, has said. The company reported a net loss of Rs 30.45 crore in the first half of the current fiscal and booked Rs 13 crore as charges towards voluntary retirement scheme and another Rs 57 crore as non-cash charges. "We have to clean up the balance sheet and it will take some time... but we are generating 10 per cent (of sales) operating profit on an ongoing basis for the last three-four months", Mr Kanetkar said. The company stretched its accounting year from April 2002 to 15 months till June this year seeking to be in line with Kennametal's fiscal from July-June. Kennametal bought out Indian promoters' shares in Widia India after it took over Widia globally. Currently, its stake in Widia India stands at 76.28 per cent. Meanwhile, the company expects to report sales close to Rs 230 crore in the 12-month period July to June, which could swell to Rs 290 crore over the accounting period ending June 2003. It also expects to report export earnings close to Rs 43 crore in the current financial year. The company expects to grow in the current year tracking a rebound in the auto-sector and intense efforts made in the development of infrastructure. "Our growth has to be tied to their growth plan", Mr Kanetkar said, adding that a booming auto sale was "good news" for Widia. The company, which has replaced its high cost debts through short-term low-cost loans, plans to spend Rs 20 crore towards capital investment over the next six months. "This investment will be financed out of our operating cash flows", Mr Kanetkar said. Ruling out an immediate timeframe for workforce rationalisation, Mr Kanetkar said that the company was currently in the process of improving productivity through `lean office' mechanisms. Currently, Widia, which boasts of a capacity utilisation of 70 per cent, employs 1,530 across its offices and factories in India.
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