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CARE reaffirms rating assigned to the bank facilities of GHCL

08 Jun 2011 Evaluate

Credit rating agency, CARE has reaffirmed the assigned ‘CARE BBB-‘ rating to the long-term bank facilities of GHCL for Rs 1,517.09 crore. The agency has also reaffirmed the assigned ‘CARE BBB-/PR3’ rating to the long-term/short-term bank facilities of the company for Rs 313.00 crore.

The ratings, however, continue to be constrained by moderate debt protection indicators, high overall gearing and inherent cyclicality associated with textile industry. Ability to generate envisaged growth in the cash accruals with prudent working capital management, more than envisaged investment in subsidiaries and execution of large size project affecting financial risk profile are key rating sensitivities.

The company’s net profit for the quarter ended March 31, 2011 has surged by 28.10% at Rs 63.77 crore as compared to Rs 49.78 crore for the quarter ended March 31, 2010. Net sales/ income from operations has increased by 28.87% to Rs 447.60 crore for the quarter under review from Rs 347.33 crore in the corresponding previous quarter.

The company has registered a growth of 28.50% in its net profit for the year ended March 31, 2011 at Rs 156.31 crore as compared to Rs 121.64 crore for the year ended March 31, 2010. Net sales/ income from operations has increased by 23.41% at Rs 1498.11 crore for the year from Rs 1213.96 crore in previous year.

GHCL has evolved as a premiere global chemical and textile company. The product range of the company includes flat sheets, fitted sheets, pillow cases, shams, valences, curtains, duvet covers, and other top bed items in 100% cotton and blends.

GHCL Share Price

513.10 8.30 (1.64%)
16-Apr-2026 16:59 View Price Chart
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