Lokesh Machines gets B+ and A4 ratings for bank facilities from ICRA

Credit rating agency, ICRA has assigned B+ rating to Rs 113.21 crore fund based facilities and Rs 7.50 crore non fund based facilities of Lokesh Machines (LML). The rating agency has also assigned an A4 rating to Rs 9.50 crore short term non fund based facilities of the company.

The ratings are constrained due to a stretched liquidity position resulting from high working capital intensity of operations and high client concentration.

The current operations of the company can be broadly categorized into two segments Machine Tools Division which comprises of manufacture of machine tools such as CNC Lathes, General Purpose Machines (GPM) & Special Purpose Machines (SPM) and  Auto Component Division which comprises of machining operations taken on Auto Components such as Cylinder Blocks supplied by Auto OEMs on job work basis.