Credit rating agency, CARE has reaffirmed the assigned ‘BBB’ ratings to the long-term bank facilities of PBM Polytex for an enhanced amount. The amount is been enhanced from Rs 50.17 crore to Rs 56.95 crore. The rating agency has also reaffirmed the assigned ‘A3’ ratings to the short-term bank facilities of the company for an enhanced amount. The amount is been enhanced from Rs 8.00 crore to Rs 9.50 crore.
The ratings continue to take into account the vast experience of the promoters of PBM Polytex (PPL) in the cotton yarn business, its long and established track record of operations, moderate capital structure and efficient working capital management.
PPL’s ability to increase its scale of operations with improvement in profitability in the scenario of volatile cotton prices and highly competitive cotton yarn industry and sustaining its capital structure are the key rating sensitivities.
PBM Polytex manufactures a wide range of products from Ne 24’s to Ne 80’s, both single and TFO doubled yarns from as many as 25 raw material mixes. Besides Indigenous raw cotton like DCH 32, MCU 5, Shankar 6 and MECH.