Jul 19 2013
Essar Ports, which today reported a 48 per cent jump in consolidated net profit at Rs 101.44 crore, is moving towards a dollar-based tariff structure to cut interest costs and mitigate the impact of falling rupee.
"We are trying to dollarise our earnings. The idea is that we will be able to borrow in dollars and have earnings in dollars, so we have a natural hedge and we get the advantage of lower cost of interests (on dollar loans)," Essar Ports MD Rajiv Agarwal.
The company has started charging customers at the Hajira port on its dollar-based tariff structure. It is also in talks with customers for implementing the same at other locations as well.
According to the new structure, the company will report earnings in dollar and customers will be charged either in dollar or its equivalent value in rupee.
This will help the company in cutting its interest costs, which have gone too high and also cushion the impact of falling rupee as both, debt and earnings being in dollar, will provide natural hedge to Essar.
Source:-www.indianexpress.com
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