Credit rating agency CARE, has assigned ‘CARE AA’ rating to the long-term bank facilities of Aditya Birla Chemicals (INDIA) (ABCIL) for Rs 197.80 crore. The agency has also assigned ‘PR1+’ rating to the short-term facilities of ABCIL for Rs 15.00 crore.
The ratings are however constrained by susceptibility of margins to coal and salt prices and product realizations being under threat from cheap imports of chlor-alkali products. Maintenance of current profit margins and healthy debt profile as well as continuance of support from parent company in terms of product off-take are the key rating sensitivities.
Besides, ABCIL has completed the acquisition of Chloro Chemicals Division from Kanoria Chemicals & Industries and henceforth the said division is part and unit of ABCIL and has been named as Aditya Birla Chemicals (India), Renukoot Chemical Division.
The company has reported net profit of Rs 21.16 crore for the quarter ended March 31, 2011 against Rs 27.96 crore for the quarter ended March 31, 2010, down 24%. The net sales / income from operations of the company stood at Rs 60.33 crore for the quarter ended March 31, 2011 against Rs 56.49 crore for the quarter ended March 31, 2010.
ABCIL, part of Aditya birla Group and a subsidiary of Hindalco Industries have got experience in running similar business as well as integrated business they acquired. The company is engaged in the manufacture and sale of chlor-alkali products in India. Its products include caustic soda, liquid chlorine, hydrochloric acid, sodium hypochlorite, hydrogen gas, aluminum chloride, and bleaching powder.
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