ICRA has re-affirmed the long term rating of [ICRA] A for Tata Metaliks’ term loan aggregating Rs 166 crore, non convertible debentures (NCD) worth Rs 100 crore and Rs 150 crore fund based bank facilities. The credit rating agency has revised outlook on long term rating from ‘Stable’ to ‘Negative’.
The issuer rating of TML has also been re-affirmed at IrA., meanwhile, ICRA has also re-affirmed the short term rating of Rs 650 crore short term non fund based bank facilities and Rs 100 crore commercial paper (CP) programme of TML at [ICRA] A1.
The revision in outlook factors in the substantial decline in profitability of company during financial year 2010-11 (FY11) on account of high raw material prices, particularly at its Redi unit, which was further accentuated by low capacity utilisation at unit because of a lack of adequate demand at remunerative prices. The ratings and revised outlook also factor in losses posted by TML in Q1 FY12, primarily on account of significantly higher raw-material consumption due to technical snags in a mini-blast furnace at its Kharagpur unit.
Tata Metaliks was set up as a joint venture between Tata Steel (TSL) and WBIDC (West Bengal Industrial Development Corporation) to manufacture pig iron at its plant at Kharagpur, West Bengal. It has two plants at present, one located at Kharagpur (West Bengal) and the other at Redi (Maharashtra), which was acquired in January 2006. TML belongs to the Tata group of companies with Tata Steel indirectly owning 50.04% of equity capital of company at present.
Company Name | CMP |
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Jindal Steel & Power | 1068.00 |
Jai Balaji Inds | 951.00 |
Lloyds Metals&Energy | 712.00 |
Steel Exchange India | 13.01 |
KIC Metalik | 51.00 |
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