IVRCL expects to reduce debt by Rs 2,500 cr in current fiscal

Hyderabad: Infrastructure company IVRCL today said it expects to reduce debt burden by Rs 2,500 crore before the end of current fiscal by selling some projects. The company may post marginal profits from the next fiscal, IVRCL Chairman and Managing Director E Sudhir Reddy said, adding that the accumulated losses of the company currently stood at Rs 800 crore and has a debt of Rs 6,500 crore on consolidated basis. [caption id=“attachment_1613025” align=“alignleft” width=“380”]  Representational Image. Reuters[/caption] The company has put up as many as seven road projects under BOT basis and a desalination plant in Chennai for sale. IVRCL has entered into a binding agreement with Dubai-based Utico FTZ to sell its equity in the desalination plant. Earlier, the company was in discussions with Tata Group firm TRIL Roads Pvt Ltd to offload three road projects. However, no binding term sheet has been signed by both parties, Reddy said. “With the sale of three road projects and the Chennai desalination plant we expect to get Rs 600 crore to Rs 800 crore equity into the company and reduce debt by Rs 2,500 crore.” “After completion of sale of all the projects (seven road projects and the Chennai plant) we get about Rs 1,500 crore equity, and cut Rs 3,500 to 4,000 crore debt from the books,” Reddy said. IVRCL has 1,700 acres of real estate worth Rs 3,000 crore (at current market prices) across the country, he said. On the company’s financials, Reddy said they hope to touch Rs 8,000 crore revenue mark in the next two years. “Next year we expect revenue to be Rs 6,000 to Rs 6,500 crore.” Reddy said shareholders have given their nod to raise Rs 300 crore by way of QIP and the company may go for it in a year. “In the next one year we are looking at going for QIP and before that we may do little bit of preferential allotment also.” According to him, the company’s total order-book is pegged at Rs 18,000 crore. Of this, up to 58 percent is water-related projects. He said the promoters have plans to increase their shareholding in the company and may do so in two or three tranches. PTI