Punj Lloyd, the engineering major is likely to refinance up to Rs 1,400 crore of debt into dollar loans over the next six months in order to reduce costs and ease the impact of a falling rupee. About 65-70% loans of the company’s Rs 5,500-crore debt pile is in rupees, 65-70% of its businesses are outside India. Because of which, it faces a steep increase in finance costs for the company on the back of high interest rate regime in India and has made a big dent in its profitability.
The company’s interest outgo has risen by more than three and half times in the last five years to Rs 780.76 crore in 2012-13. It stood at Rs 220.76 crore in 2008-09.
