Credit rating agency, CARE has revised rating of Shiva Cement’s long term bank facilities worth Rs 45.44 crore to ‘BB’ from ‘BBB’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 2 crore to ‘A4’ from ‘A3’. The revision in ratings is on account of the deterioration in the debt coverage indicators along with liquidity pressure faced by the company due to delay in sanctioning of additional fund based working capital facility required for commencement of commercial operation of the expanded facility.
The ratings are also constrained by small scale of operations, absence of captive power plant, volatility in input and finished goods prices, low capacity utilization, higher dependence on working capital, the risk associated with the project implementation and cyclicality associated with the cement industry.
Shiva Cement (SCL) commenced its operations in 1986 and is currently engaged in manufacturing of Portland Slag Cement (PSC) (the slag blending mix ranging between 35 to 45%). The company operates two cement plants with an installed cement capacity of 132,000 tpa and clinkerisation facility of 115,500 tpa located at Sundargarh, Odisha.
Company Name | CMP |
---|---|
Ultratech Cement | 9735.35 |
ACC | 2524.40 |
Shree Cement | 24123.30 |
Ambuja Cement | 632.05 |
Dalmia Bharat | 1798.00 |
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