May restructure debt via foreign loans, ECBs: Unity Infra

Unity Infraprojects' Q4 FY11 revenues increased 16.5% at Rs 578 crore versus Rs 496 crore. Its PAT was up 11% at Rs 31 crore versus Rs 28 crore.

Madhav Nadkarni, CEO, Unity Infra Projects in an interview with CNBC-TV18 said that the interest costs have increased by 300-350bps in the last one year. The company has a total debt of Rs 848 crore. It is looking to restructure debt through foreign loans or external commercial borrowings (ECBs) so that interest cost can be brought under control. Below is the verbatim transcript of Nadkarni's interview with Latha Venkatesh and Gautam Broker of CNBC-TV18. Also watch the accompanying video. Q: Can you compare the performance quarter on quarter, have you been able to do in Q4 as well as you did in Q3? A: Yes. Q4 results were compared to Q3 much better because in Q3 we had a flattish 11% to 15% range, top line growth. In Q4 we could perform well compared to Q3 to Q4. Q: What have interest costs have been weighing on the company - your debt to equity has been over 1.3. Are there any plans to pair down debt because the interest costs have been eating into profitability? A: Over a period of last one year - nearly 300 to 350 bps increase was there in interest cost. So that definitely affects us. We are planning for restructuring of debts basically by foreign loans or ECBs. So we can definitely bring our interest cost in control. Q: So by how much do you think you will be able to reduce your interest cost after once you have restructured? A: Considering the total impact, 10% can be the immediate plan. Also Read: Unity Infra bags BOT project worth Rs 198.crore Q: What is the total debt now? A: It