Hi Sunil,
As per the management commentary, the debt is for funding the working capital needs of the company. As they do not want to touch the long term investment that they have made in debt mutual funds, they are borrowing money to fund the same. Whether that is the the most optimal approach or not is debatable. However, personally I do not see that as much of material concern as the financing cost is quite less compared to overall profitability levels.
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