In the recent Q2 FY24 concall, management mentioned that the interest cost is expected to be ~145Cr for next FY. This seems to be a huge jump as compared to the past. Though some jump is expected due to the recent Capex and the corresponding debt, but the number given by management seems to be unexpectedly high. I remember management had given the commentary earlier that they do not expect the overall avg interest rate to be more than 7-8% as they are using the different govt schemes for the low cost debt, hence this number seems to be much higher that what i can expect even at say 8% on ~1300-1400Cr debt.
Does anyone have any view on this – why figure of 145Cr? I am a bit concerned that this number has potential to depereciate the EPS to a large extent.
Disclaimer: I sold out this scrip in recent run up to book profit. However I may enter again if the price falls below say 300-290 as i think it may run up again as the textile industry showing signs of recovery and cotton prices have stabilized to a better level + the recently completed Capex is expected to give the boost to the revenue.
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