CARE reaffirms assigned ‘A1’ rating to the CP issue of Jyoti Structures

Credit rating agency, CARE has reaffirmed the assigned ‘A1’ rating to the Commercial Paper (CP) issue carved out of working capital limits of Jyoti Structures for Rs 100.00 crore.

The company’s ability to manage its working capital in view of its increasing operations and to improve profitability margins amidst growing competitive pressures, are the key rating sensitivities. However, the ratings continue to be constrained by the company’s high working capital utilization levels and increased interest costs resulting in relatively low net profit margins.

Jyoti Structures (JSL) is one of the leading players in power transmission, distribution and substation related EPC projects. The company has an installed capacity of 116,160 metric tonnes (mt) per annum for manufacturing transmission lines, towers and structures. JSL also has a tower testing facility at Ghoti, Igatpuri. The company has a significant presence in the overseas market with projects executed in around 40 countries.