Real-estate firm Omaxe Ltd sees borrowing costs rising by as much as 300 basis points this fiscal year as interest rates in the country rise.
Executive Director Vipin Aggarwal said that the firm will raise 5 billion rupees in the year ending March 2009. A deteriorating sales environment for property companies may also weigh, he added.
Rising financing costs and higher sales costs in the April-June quarter pushed profits at Omaxe down 23 percent, even as sales remained flat.
He said, “We have not faced any problem in raising debt but borrowing costs are going up”. Further he added, “It could be 200-300 basis points more expensive than last year”.
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