Credit rating agency, CARE has assigned ‘BB-’ rating to Kulkarni Power Tools’ Long-term bank facilities worth Rs 24.83 crore and ‘A4’ rating to the company’s Short-term bank facilities worth Rs 15.58 crore. The ratings assigned to the bank facilities of Kulkarni Power Tools (KPT) are constrained by working capital-intensive nature of operations, vulnerability of profits to volatile raw material prices, declining trend in profitability margin over the last three years ended FY14 (refers to the period April 1 to March 31), fragmented and intense competition in the electric power tools industry.
Kulkarni Power Tools operates in three business segments - portable power tools, blowers and windmills. The power tools division is engaged in manufacturing of electric power tools such as drills, angle grinders, sanders, polishers, tile cutters, cut-off saws, valve master refacers and control motors etc. which find applications in variety of industries including construction, automobiles, railways, shipyards, bus-body building, fabrication work, housing and pipe laying for refineries.
