Credit rating agency, CARE has reaffirmed the assigned ‘A1+’ rating to the Commercial Paper / Non Convertible Debentures (carved out) issue of Alok Industries for Rs 1,000.00 crore. The agency has also reaffirmed the assigned ‘A1’ rating to the Commercial Paper (standalone) issue of the company for Rs 250.00 crore. The company’s ability to reduce its gearing levels and its exposure to the real estate sector remain the key rating sensitivities.
The ratings continue to derive strength from the extensive experience of the promoters in the textile business, vertically integrated operations along with economies of scale and leadership position in the textile industry. The ratings further derive strength from growth in the operations coupled with healthy profitability margins.
Alok Industries is engaged in the business of yarn, weaving, knitting, processing, home textiles, apparel fabrics, garments and readymade garments.
