Credit rating agency, CARE has revised rating of Ludlow Jute & Specialities’ long term bank facilities worth Rs 7.72 crore to ‘A’ from ‘A-’. The rating agency has revised rating of company’s short term bank facilities worth Rs 30 crore to ‘A2+’ from ‘A2’. Meanwhile, the rating agency has also revised rating of company’s Long-term/Short-term bank facilities worth Rs 15.00 crore to ‘A/ A2+’ from ‘A-/A2’.
The revision in ratings of Ludlow Jute & Specialities (LJSL) takes into account the improvement in financial risk profile in FY13 (refers to the period April 1 to March 31) & H1FY14 marked by improvement in profitability margins and overall gearing and visibility of steady stream of revenue & profitability from government orders (which accounts for 65-70% of total volume) with no major capex planned over the medium-term. The ratings also draw support from experienced promoters with long & satisfactory track record, continuous development of innovative jute products to command higher premium in the export market and government support to the sector.
LJSL, incorporated in 1921, is engaged in manufacturing and selling of jute products, with an aggregate installed capacity of 67,500 MTPA at its unit in Howrah, West Bengal. In 1977, LJSL was taken over by the Kolkata-based Kanoria group, having major interest in chemicals, textiles and jute.