The pharma company in a clarification to the BSE said, "The company is currently in talks with banks to explore the possibility of converting its rupee debt into dollar denominated debt. This plan is to try and reduce the interest burden on the company which will ultimately be beneficial to the company's bottom line."
Orchid Chemicals had a total debt of Rs 3,395 crore as on March 31, 2015.
Orchid Chemicals had reported a net loss of Rs 48 crore on sales of Rs 254 crore for the quarter ending on June 30, 2015.
In the June quarter, it's EBIT or operating profit of Rs 23 crore was much lower than its interest cost of Rs 71 crore.
Conversion of rupee loans to foreign currency loans, if it happens, will be positive for the company as it will lower the interest cost burden, say analysts.
As of 1.14 p.m., Orchid Chemicals shares traded 3.41 per cent higher at Rs 54.55 apiece, compared to 0.92 per cent gain in the broader Nifty.
