Credit rating agency, ICRA has upgraded the rating assigned to Rs 146.2 crore term loans and Rs 72.5 crore fund based facilities of Suryalakshmi Cotton Mills from LBB+ to BBB-. The rating agency has also upgraded the rating assigned to Rs 6.3 crore fund based facilities and Rs 31.5 crore non-fund based facilities of the company from A4+ to A3. The outlook on the long term rating is stable.
The rating upgrade reflects the sustained improvement in the financial performance of the company driven by strong growth in volumes and stable profit margins. The improvement has been supported by the competitive position of SLCM in the denim business with its long standing presence, established relationship with clients leading to recurrent orders, integrated nature of operations and product diversification within the denim and yarn segments.
Suryalakshmi Cotton Mills was set up in 1962, initially with a capacity of 6000 spindles for manufacture of cotton and blended yarns. Over a period of four decades, it has expanded its spinning capacity to 60,000 spindles and has diversified into denim fabric manufacturing activity with a capacity of 40 million metres.
| Company Name | CMP |
|---|---|
| Welspun Living | 125.45 |
| Vardhman Textiles | 557.75 |
| Arvind | 387.20 |
| K.P.R. Mill | 926.40 |
| Page Industries | 37935.70 |
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