We, in TEIL, realise that the Company needs to be resilient and financially sound to be able to absorb business challenges which may arise due to external environment. We are in a journey to achieve these objectives on multiple fronts.
Firstly, the focus is to strengthen the business risk profile of the company by ensuring equitable dependence on various businesses: From being predominantly a sugar company, the share of sugar business has reduced to 62% and 49% in FY 24 in terms of turnover and segment profit respectively.
Secondly, there has been a conscious effort to reduce the leverage, especially due to sugar business which is seasonal in nature, and our financial prudence has led to low leverage ratios - 0.46 (total net debt to equity ratio) and improved credit rating. It has helped us to access funds at competitive prices and has led to lower finance cost and improved rating.
Lastly, the capex is being undertaken based on acceptable return matrix only with shorter payback. With our vision, we are well on our journey to achieve growth with improved margins and value creation for stakeholders.
Suresh Taneja Group Chief Financial Officer
