Printer Friendly

-CRISIL rates Mahidhara Chemicals' bank facilities at BBB-/P3.

BANKING AND CREDIT NEWS-December 31, 2010--CRISIL rates Mahidhara Chemicals' bank facilities at BBB-/P3(C)2010 M2 COMMUNICATIONS http://www.m2.com

31 December 2010 - CRISIL rating agency on Friday assigned BBB-/positive/P3 ratings to Mahidhara Chemicals Pvt Ltd's bank facilities.

The agency issued the following press release:

Rs.30.0 Million Cash Credit Limit BBB-/Positive (Assigned)

Rs.3.0 Million Standby Line of Credit BBB-/Positive (Assigned)

Rs.12.5 Million Term Loan BBB-/Positive (Assigned)

Rs.40.0 Million Letter of Credit P3 (Assigned)

CRISIL has assigned its 'BBB-/Positive/P3' ratings to Mahidhara Chemicals Pvt Ltd's (MCPL's) bank facilities. The ratings reflect MCPL's diversified product profile, established relationships with customers, and comfortable financial risk profile, marked by low gearing and healthy debt protection metrics. These rating strengths are partially offset by customer concentration in MCPL's revenue profile, and the company's small scale of operations.

Outlook: Positive

CRISIL believes that MCPL continue to benefit from its diversified product profile, leading to a healthy operating margin. The rating may be upgraded if the company improves its scale of operations while sustaining its existing financial risk profile. Conversely, the outlook may be revised to 'Stable' if MCPL's operating margin or topline is lower than expected due to low offtake of the new products, or it undertakes a large, debt-funded capital expenditure programme, leading to deterioration in its financial risk profile.

About the Company

MCPL was originally incorporated in 1979 as Shvet Pack Pvt Ltd (SPPL) by Mr. R Narasimha Raju. SPPL, which manufactured egg trays, discontinued operations in 1991 and there was no business activity undertaken till 1997. In 1997, the name of the company was changed to MCPL, and it began manufacturing chemicals such as sodium hydride, sodium amide, and magnesium tertiary butoxide, which are primarily used in the pharmaceutical, agricultural, flavour, and fragrance industries. MCPL's plants are located at Secunderabad and Visakhapatnam (both in Andhra Pradesh).

MCPL reported a profit after tax (PAT) of Rs.39.8 million on net sales of Rs.310.5 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs.18.9 million on net sales of Rs.212.3 million for 2008-09.

((Comments on this story may be sent to info@m2.com)).END.PUB430>PDDecember 31, 2010>JNBANKING AND CREDIT NEWS.PRICEDATENOT APPLICABLE.DAY

COPYRIGHT 2010 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 Banking & Credit News (BCN)
Date:Dec 31, 2010
Words:392
Previous Article:-CRISIL reiterates Gehlot Motors' rating.
Next Article:-CRISIL assigns D/P5 to the bank facilities of VNR Refineries.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters