Credit rating agency, CARE has reaffirmed ‘BB-’ rating to GTN Textiles’ long term bank facilities worth Rs 46.29 crore which was reduced from Rs 55.06 and ‘A4’ rating to company’s Short term Bank Facilities worth Rs 77.50 crore which was enhanced from Rs 71.00 crore.
The ratings continue to be constrained by the weak financial risk profile of GTN Textiles (GTL) as evidenced by the high gearing levels consequent to reduction in the net-worth due to losses posted in FY12 and FY13 (refers to the period April 1 to March 31), low cash accruals and exposure to volatility in raw material prices. The ratings also factor in the moderation in the operating margins of the company in FY13.
GTN Textiles, formerly GTN Industries, was incorporated on March 28, 2005 as a public limited company. As per a scheme of arrangement, the company took over the demerged business of GTN Industries comprising of business activities of the Aluva unit, investment of 39.07% of the paid-up equity share capital of Patspin India along with other assets situated in Mumbai, Kolkata and Coimbatore.
| Company Name | CMP |
|---|---|
| Trident | 26.12 |
| Filatex India | 44.94 |
| Nitin Spinners | 419.70 |
| Nahar Spinning Mills | 249.20 |
| Sanathan Textiles | 427.00 |
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