Credit rating agency, CARE has revised rating of TT’s long term bank facilities worth Rs 167.10 crore to ‘BB’ from ‘BB+’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 201 crore to ‘A4’ from ‘A4+’.
The revision in rating factors in deterioration in profitability in FY14 (refers to the period April 1 to March 31) and H1FY15 coupled with leveraged capital structure and weak coverage indicators. The ratings continue to be constrained by the continued volatility in the raw material prices, mainly cotton, resulting in volatile margins and the risk related to the competition from other players.
TT (formerly Tirupati Texknit) was incorporated in 1978, as a public limited company, with facilities to manufacture knitted fabric at Ghaziabad. The company is engaged in the manufacturing of combed cotton yarn, carded cotton yarn and knitted fabric cloth at its units at Gajroula (U.P) and Avinashi (Tamil Nadu). The company is a progressive organization with sound investments in good quality systems and innovative marketing.
