No decision yet on restructuring: Kesoram

Kesoram is yet to decide on how restructuring would be carried out in the company as the core-committee is yet to explore the 'options', a top company official said today.
"There has been no development yet on restructuring," Kesoram vice-chairperson Manjushree Khaitan said on the sidelines of the company's annual general meeting here.
She declined to give any timeline by when the three-member committee would submit its report on restructuring, which is felt to be an urgent necessity.
Kesoram recently informed the bourses about formation of a three-member committee for "reorganising and realigning' of Kersoram.
The committee would look holistically and not just on any vertical tyre or cement business, Khaitan said.

Company officials said it would be premature and speculative whether the company was planning to hive-off any of the divisions, when asked about speculation to divest tyre business to raise resource for paring debt.

The company told its shareholders that the restructuring was aimed at reducing its huge debt.
Kesoram was saddled with a huge burden of Rs 572.83 crore as finance costs led the company to post a loss of Rs 480 crore in 2013-14.
Net revenue from tyre business was down by 12 per cent at Rs 3,092 crore, while, cement business saw a decline of weight per cent to Rs 1702 crore during the year compared to 2012-13.

CFO T K Das replying to shareholders said that capacity utilisation was low as the company was focused on profitability instead of volume.
He said now they would aim at high capacity utilisation for tyre.