CARE has assigned ‘B’ and ‘A4’ ratings to long and short term bank facilities of Himachal Futuristic Communications (HFCL)aggregating to the worth of Rs 305.5 crore and Rs 110.0 crore respectively. The ratings are constrained by weak credit risk profile of (HFCL) with recent history of debt restructuring, short track record of profitable operations, concentration of revenue and highly competitive industry. The ratings, however, derive strength from the highly experienced management team and long track record of operations.
The company is engaged in the manufacturing of telecom equipments and provides turnkey services. The manufacturing facilities of the company are located in Solan, Himachal Pradesh (assembly line), and Salcete, Goa (optical fibre cables; capacity of 36,000 cable km).
