ICRA Limited has revised the long term rating of the Company’s line of credit from [ICRA]A+ to [ICRA] A and the short term rating from [ICRA]A1+ to [ICRA]A1 the reasons for such revision as indicated by ICRA Limited in brief, are :

The ratings primarily takes into account the deterioration in the financial risk profile of the company during FY2016, with significant decline in operating profits and weakening of debt coverage indicators. A muted realization, failing to compensate for the steep increase in labour costs, led to a decline in operating profits as well as debt coverage indicators. ICRA notes that the expected production loss during FY 2017 along with subdued realization is likely to keep the company’s profitability under pressure in the current financial year too.

 

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