Credit rating agency, CARE has reaffirmed the assigned ‘CARE A+’ rating to the long-term bank facilities of McNally Bharat Engineering Company (MBEL). The amount is been reduced from Rs 2403.00 crore to Rs 2296.00 crore. The agency has also reaffirmed the assigned ‘PR1+’ rating to the short term bank facilities of MBEL. However, the amount is been enhanced from Rs 122.20 crore to Rs 284.00 crore.
The ratings factor in intense competition in the construction business, MBEL’s high average collection period, volatile input prices, exposure in group companies and moderate overall gearing ratio. Ability of MBEL to manage working capital effectively and raise resources to manage growth in operation, steady flow of orders & their timely execution and timely receipt of contract proceeds with containment of operating cost remain the key rating sensitivities.
McNally Bharat Engineering Company is one of the leading engineering companies. It provides turnkey solutions in areas of power, steel, alumina, material handling, mineral beneficiation, coal washing, ash handling and disposal, port cranes, civic and industrial water supply etc.