Real estate seems to have fallen a victim to untoward circumstances in this case. Gammon India, led by Abhijit Rajan, Chairman and Managing Director, plans to reorganise its cash flows and pare debt to around Rs 2,500 crore amidst a slowdown in the infrastructure space.
The company is currently reeling under debt mainly due to cost overruns in a few projects with the slowdown in infra space further adding to its woes. To combat this, the company which faced a loss in the quarter ending September this year owing to muted sales and higher financing costs, intends to offload its real assets. This will enable the company to reduce its borrowings by the end of the financial year to Rs 2,500 crore. It will also shrink its balance sheet, improve interest service ratio and enhance project execution.
