Credit rating agency, CARE has revised rating of Shivagrico Implements’ long term bank facilities worth Rs 7.31 crore to ‘BB’ from ‘BBB-’. The rating agency has revised rating of company’s short term bank facilities worth Rs 80 lakh to ‘A4’ from ‘A3’. The revision in the ratings factors in the significant decline in profitability of the company due to a decline in job work from Tata Steel and deterioration in its liquidity position.
Shivagrico Implements has two divisions with it, one is rolling division with the installed capacity of 24,600 Metric Tonnes (MT) of rolling products per annum and another is forging division with the installed capacity of 2,600,000 units of agriculture implements as on March 31, 2013. The capacity utilization in both the divisions remained at 55% and 40% in FY13 (refers to the period April 1 to March 31) as against 48% and 70% in FY12 respectively.
