Credit rating agency, CARE has reaffirmed ‘A’ rating to Electrosteel Castings’ long-term bank facilities worth Rs 2,094.50 crore. The rating agency has also reaffirmed ‘A/A1’ rating to the long term/short term bank facilities of the company worth Rs 1000 crore.
The ratings assigned to Electrosteel Castings (ECL) continues to derive strength from experienced promoter with long track record of operations, established position of the group in the domestic ductile iron pipe segment, consistently high capacity utilization and satisfactory order book position.
The ratings, however, are constrained by moderate debt coverage indicators, high exposure towards the group companies, risk associated with implementation of ongoing projects, volatility in input price, foreign exchange fluctuation risk and working capital intensive nature of business resulting in high operating cycle.
