ICRA has revised its long-term rating assigned to Bheema Cements’ (BCL) Rs 15.0 crore fund based limits and Rs 123.4 crore term loans to ‘D’ from ‘LC’. ICRA has also reassigned its short-term rating assigned to Rs 6.0 crore non-fund-based limits of BCL to ‘D’ from ‘A5’.
The rating revision reflects continuing delays in debt servicing by the company. The company’s liquidity profile has been stressed since last financial year owing to declining sales and profitability in the face of sluggish demand conditions, pricing pressures on account of supply surpluses, delays in completion of the expansion project and increasing input costs. Further, the company has approached its bankers for loan restructuring under the corporate debt restructuring (CDR) scheme.
The company sells its cement under the brand name of “BHEEMA” and caters to markets predominantly in Andhra Pradesh in Nellore, East & West Godavari, Krishna, Guntur and Prakasam districts. However the company has recently expanded its market to other districts within Andhra Pradesh and also to other states like Tamilnadu and Karnataka.
Company Name | CMP |
---|---|
Ultratech Cement | 9582.70 |
ACC | 2523.25 |
Shree Cement | 24084.95 |
Ambuja Cement | 631.30 |
Dalmia Bharat | 1843.70 |
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