ICRA has reaffirmed the rating of “BB+” assigned to Mohit Industries’ (MIL) Rs 46.80 crore cash credit facility, reduced from Rs 55.00 crore and the Rs 58.18 crore term loans, reduced from Rs. 80.60 crore. The outlook on the long term rating is ‘Stable’. Further, the rating of ‘A4+’ has been reaffirmed for the Rs 8.25 crore enhanced from Rs 2.25 crore short term facilities of MIL.
The reaffirmation of ratings takes into account the intense competition in a highly fragmented polyester yarn manufacturing industry with numerous unorganized as well as large organized players and vulnerability of profitability to adverse fluctuations in foreign exchange rates with increasing export volumes. The ratings, however, favourably factor in the long experience of the promoters and established track record of the company in the textile industry; the location advantage derived from proximity of the manufacturing unit to the raw material sources and downstream processing units and the diversified clientele base of the company.
Mohit Industries is primarily involved in manufacturing of DTY (Drawn Textured Yarn) and gray fabric. The company is listed at Bombay Stock Exchange. The company’s plants are located at Kim (Surat) and Silvassa. Currently MIL has an installed capacity of 22537 MTPA for manufacturing DTY and 9.50 million metres per annum for manufacturing gray fabric.
