Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Mangalam Ventures’ long term bank facilities worth Rs 10.65 crore and ‘A4+’ rating to company’s Short term Bank Facilities worth Rs 4.20 crore.
The ratings assigned to the bank facilities of Mangalam Ventures (MVL) continue to be constrained by the relatively modest scale of operations, moderate profitability and customer concentration risk. The ratings further continue to be constrained by susceptibility of profit margins to the volatility in the foreign exchange rates and presence in the highly competitive and fragmented industry.
Mangalam Ventures (MVL) is engaged in the manufacturing and export of readymade garments primarily to Canada (accounted for 43.45% of its total revenue in FY15 (refers to the period April 1 to March 31)), USA and Europe (forming about 42.63% in FY15). MVL has its manufacturing facilities located at Faridabad, Uttar Pradesh (having installed capacity of 20 lakh pieces per annum as on March 31, 2015 and average capacity utilization of 80% in FY15).