Credit rating agency, CARE has reaffirmed ‘BB-’ rating to Inducto Steel’s long term bank facilities worth Rs 40 crore and ‘A4’ rating to company’s Short term Bank Facilities worth Rs 150 crore. The ratings of Inducto Steel (ISL) continues to be constrained by risk inherent in ship breaking, steel trading and money-lending businesses, low and volatile profitability margins, highly leveraged capital structure and foreign exchange fluctuation risk. The ratings however continue to factor in the extensive experience of the promoters in the ship-breaking activities and favourable outlook for the industry on account of continuing downturn in the shipping industry.
Inducto Steel (ISL) is a part of the Hariyana group, promoted by Mr Shanti Sarup Reniwal and is engaged in ship breaking business. The Hariyana group is primarily engaged in the ship-breaking and steel trading activities. Besides, the group is also engaged in the real estate, money lending and sponge iron manufacturing activities.
