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CARE revises ratings of KG Denim’s bank facilities

07 Oct 2015 Evaluate

Credit rating agency, CARE has revised rating of KG Denim’s long term bank facilities worth Rs 102.22 crore to ‘BB’ from ‘BB-’. Further, the rating agency has reaffirmed ‘A4’ ratings to company’s short term bank facilities worth Rs 132.40 crore. The revision in ratings assigned to the bank facilities of KG Denim (KGDL) factors in the improved financial performance during Q1FY16 (refers to the period April 1 to June 30) with growth in denim business, albeit stable during FY15 (refers to the period April 1 to March 31) and likely improvement on profitability with implementation of cogeneration power plant.

The ratings continue to be constrained by working capital intensive nature of operations, high gearing levels, volatility in profitability due to fluctuation in raw material prices & foreign exchange fluctuation and cyclical nature of the denim industry.

KG Denim Share Price

16.03 0.88 (5.81%)
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