Kesoram Q4 results: Firm posts net profit of Rs 96 cr, to launch Rs 200 cr rights issue

KOLKATA: BK Birla Group company Kesoram Industries on Friday posted a consolidated net profit of Rs 96.41 crore during the fourth quarter of the 2020-21 fiscal as compared to a loss of Rs 82.17 crore in the year-ago period.

The board of directors of the company also approved a fundraising plan up to Rs 600 crore, including a rights issue of Rs 200 crore, to reduce its Rs 1,900 crore high-cost debt, it said.

The company had raised the high-cost debt from a host of investors to fund its turnaround strategy.

Kesoram, mainly a cement maker, is committed to reduce its high-cost loan substantially and has planned to achieve the goal through a "combination of equity and replacing of existing debt with lower coupon".

"As a step towards the plan, the board has approved to raise equity up to Rs 600 crore. Initially, we will be launching a rights issue of Rs 200 crore," the company said.

After the rights issue, more funds would be raised depending on the market condition, and all options, including private placement, follow-on public offering, qualified institutional placement, will be explored, it said.

According to its filing in the stock exchange, the company's consolidated loss before tax during the March quarter was at Rs 168 crore but it adjusted deferred tax asset (net) amounting to Rs 261.62 crore, which helped it post a net profit.

Its revenue from operations was at Rs 861.56 crore in the January-March quarter of FY21, as compared to Rs 532.49 crore in the year-ago period.

The Kolkata-headquartered company posted a consolidated net profit of Rs 167 crore in FY21.