Credit Analysis and Research (CARE) has reaffirmed the ‘CARE A-’ for Anant Raj Industries’ long-term loans and Proposed bank facilities aggregating to Rs 831.80 and Rs 56.78 crore respectively. The credit rating agency has also retained the similar rating for company’s NCD amounting to Rs 200 crore.
Further, the credit rating agency has assigned the ‘CARE A-’ for company’s proposed NCD aggregating Rs 225 crore. The rating continues to reflect the quality land bank of Anant Raj Industries in Delhi & NCR which is largely paid for, and rich portfolio of leasable assets. The rating also factors in the high proportion of booking achieved in the ongoing projects and comfortable capital structure of ARIL.
However the rating is constrained by the dependency of ARIL’s medium-term cash flows on the limited number of projects, aggressive development plans and risk arising from the concentration of its projects in the NCR which are exposed to high competition in the market.