Jubilant Organosys to restructure its debt

Pharmaceutical firm Jubilant Organosys is looking to restructure its debt in a manner that it would be able to redeem foreign currency convertible bonds (FCCBs) through internal accruals.

"We are continuously retiring the debt in such a manner that there is no repayment coming now, so that the FCCB obligations can be met out of the internal accruals," Jubilant Organosys Executive Director Finance and CFO R Sankariah said in a conference call.

The debt which has to be paid in the next 2-3 years' time, is now to be paid within a five year period, Sankariah said.

"We are extending the tenure of the debt at a lower cost so that our cost of debt comes down...," he added.

 

The company has outstanding FCCBs of $192 million, out of which the company redeemed $50 million on May 2009 while the remaining $142 million has to be redeemed in 2011.

The company today reported a consolidated net profit of Rs 125. 82 crore for the quarter ended June 31, 2009 registering a 10-fold jump over the corresponding quarter due to mark-to-market gains over the same period last year.

It had a net profit of Rs 12.76 crore in the same period ended June 2008, Jubilant said in a statement.