ICRA has reaffirmed the “ICRA BB” rating assigned to CMI’s fund based limits (reduced from Rs 11.5 crore to Rs10 crore). The outlook on long term rating is stable. ICRA has also reaffirmed “ICRAA4” rating assigned to company’s non fund based facilities (enhanced from Rs 6.5 crore to Rs 10 crore).
The reaffirmation of ratings factor in risks arising out of modest scale of operations of CMI which results in limited economies of scale and bargaining power vis-a-vis customers or suppliers, and intense competitive pressures in the cable industry.
CMI manufactures a variety of cables that include signaling, instrumentation, control, Power and Jelly Filled Telecom cables. However, the main source of revenue is the supply of signaling cables and other safety cables to Railways and other government agencies.