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CARE reaffirms rating of Khaitan Electricals’ bank facilities

31 Aug 2013 Evaluate

Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Khaitan Electricals’ long term bank facilities worth Rs 183.87 crore which was reduced from Rs 188.49 crore and ‘A4+’ rating to company’s Short term Bank Facilities worth Rs 92.25 crore which was reduced from Rs 110.0 crore.

The company has received the said rating on the back of its high gearing, elongated working capital cycle leading to higher working capital utilization, volatility in raw material prices, high bargaining power of major dealers and inability to price its products at a premium due to intense competition.

Khaitan Electricals (KEL) is engaged in the business of manufacturing & selling of electric fan, pumps and other electrical appliances. KTEPL was converted into a public limited company in 1983 and subsequently rechristened as Khaitan Electricals Ltd. (KEL) in 1999. KEL sells its products under the brand ‘Khaitan’.

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