In an interview with CNBC-TV18, TV Sandeep Reddy, MD, Gayatri Projects, spoke about the latest happenings in his company and sector.
Below is a verbatim transcript of his interview with CNBC-TV18's Latha Venkatesh and Anuj Singhal. Also, watch the accompanying video. Q: You have seen interest rates going up quite a bit, you already have seen interest costs go up quite a bit, you already have quite a bit debt on your book, so going by your experience, are you facing some sort of problems in raising funds? A: As of now we have not faced any problems. In fact just a few months, we have closed one of our Indore-Dewas project, financial closure. We are in the process of closing Hyderabad, Karimnagar, a debt of nearly Rs 1,500 crore, by next week. Interest rates have gone up, what we have earlier envisaged at about 10.5-11%, now they are talking about 11.5%. But, interest rates have gone up to that extent, but otherwise we are not facing much of a problem. Q: At 11.5%, is it all that viable because a lot of infrastructure people are scared to take money at even 11%? A: No, we have bid well these projects by 11-11.5%. So, basically, it is a floating rate, and this rate is for the construction period. Once construction period is over, then we can securitise the projects and ultimately the risk on the projects comes down. So, the overall cost comes down. So, when we bid for a BOT project for a concession period of 18-20 years, we assume a lower interest rates, but the construction in the state is always assumed as higher. So, it doesnDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
