CARE has assigned the rating of ‘CARE BBB’ for Pitti Laminations’ long-term bank facilities estimated to be worth of Rs 137.43 crore. The credit rating agency has assigned the ‘CARE A 3+’for company’s short-term bank facilities estimated to be worth of Rs 142.00 crore.
The rating factors in Pitti Laminations (PLL)’s long-track record and the company being one of the major players in the Stamping and Lamination (S&L) industry, improvement in the operations during FY11, reputed client base, satisfactory order book and balanced proportion of the domestic and export sales. However, the rating agency has reported that the rating is constrained by the client concentration risk, limited sources of the supply of raw material in India and consequent dependence on the imported raw material and marginally stretched working capital cycle leading to a higher gearing levels.
PLL is engaged in the manufacturing of electrical laminations with an installed capacity of 25,000 MTPA for the use in Rotating Electrical Machinery such as industrial motors, aeronautic wing control motors etc. The company also manufactures die-cast rotors and assembled stators, besides manufacture and sale of press tools, jigs and fixture.
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