PG Electroplast CFO Refutes Liquidity Concerns, Calls Brokerage Report ‘Factually Inaccurate’

PG Electroplast Ltd. has denied claims of financial stress flagged in a recent report by HDFC Securities, terming the analysis “factually inaccurate” and unrelated to the company’s actual financial position.

Speaking to NDTV Profit, Pramod Chimmanlal Gupta, Chief Financial Officer of PG Electroplast, said the company remains in a robust financial position with no liquidity concerns.

“We are a net cash company and have been so for almost the last 12 months. Our gross debt is about Rs 400 crore, while we hold more than Rs 600 crore in cash and fixed deposits on the balance sheet. This is despite having spent over Rs 450 crore on capex in the first nine months of this year,” Gupta stated to NDTV Profit.

He dismissed the concerns raised in the report, adding that the data points cited appear to pertain to another company.

On working capital, Gupta explained that inventory levels were temporarily elevated due to an early monsoon that curtailed the air-conditioning season in June.

“We were carrying around Rs 1,300 crore of inventory at the end of March, June, and September, but this was fully paid inventory. As guided earlier, post-November things have started normalising,” he said.

The HDFC Securities report, titled “PG Electroplast in Limelight After Red Flags in Financial Health Raise Warnings”, had claimed rising leverage and weakening cash flows could pressure the company unless operations stabilise or liabilities are restructured. PG Electroplast has categorically rejected these assertions.

In an exchange filing the company said that PG Electroplast has complied with all applicable disclosure and requirements in under the Securities Exchange Board of India's Listing Obligation and Disclosure Requirements Regulations, 2015. The company has released all material information is disclosed to the stock exchanges in a timely manner.