Credit rating agency, CARE has assigned ‘B-’ rating to Lokesh Machines’ Long-term bank facilities worth Rs 103 crore. The rating agency has also assigned ‘A4’ rating to the company’s Short-term bank facilities worth Rs 27 crore.
The ratings assigned to the bank facilities are constrained by the stretched operating cycle with working capital intensive nature of operations, revenue concentration from few clients, cyclical nature of the end user industry, volatility in raw material prices and increase in leverage ratios over the last three years ending FY13 (refers to the period April 1 to March 31).
Lokesh Machines (LML) has six manufacturing units (five in Hyderabad and one in Pune) with an installed capacity of 600 machines per annum. LML operations can be segregated into machines and components division.
