Credit rating agency, CARE has assigned ‘BB+’ rating to Valson Industries’ Long-term bank facilities worth Rs 13.55 crore. The rating agency has also assigned ‘BB +/ A4+’ rating to the company’s Long/Short-term Bank Facilities worth Rs 1.75 crore.
The company has received the said ratings on the back of its modest scale of operations, decline in operating profitability and moderate debt coverage indicators. The ratings are further constrained by VIL’s profitability margins being exposed to volatility in raw material prices and its presence in a fragmented industry leading to low pricing power.
Valson Industries Limited (VIL) is a flagship company of the Mutreja Group, is primarily engaged in the manufacturing and dyeing of polyester yarn & dyeing of cotton yarns. VIL has also backward integrated into texturising and twisting. Over the years, VIL has established and expanded its polyester texturised yarn (PTY), twisted yarn and dyeing capacities.