Credit rating agency, ICRA has upgraded the rating assigned to the Rs 121.79 crore term loans of Ambika Cotton Mills from LBBB- to BBB. The outlook on the rating is stable. The rating agency has also upgraded the rating assigned to the Rs 165.0 crore fund-based facilities of the company from A3 to A3+.
The upward revision in rating reflects the sustained improvement in operational and financial profile of the company, with steady growth in volumes and revenues driven by favourable demand environment for cotton yarn over the past two fiscals; sound operating margins aided by its product profile and low-cost inventory; and healthy accruals leading to lower gearing and adequate coverage indicators.
Ambika Cotton Mills (ACML) is a specialty cotton yarn manufacturer in the premium compact segment. It is a first generation entrepreneur in the year 1988, to offers a wide range of cotton yarn made out of indigenously grown as well as imported cotton (“Supima” from USA and “Giza” from Egypt) from various countries.
Company Name | CMP |
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Trident | 38.23 |
Filatex India | 56.60 |
Sutlej Textiles&Inds | 54.51 |
Nahar Spinning Mills | 267.95 |
Nitin Spinners | 341.00 |
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