Simplex Infra cracks as rating agency revises outlook

Simplex Infrastructures was down 4.14% to Rs 129.70 at 12:09 IST on BSE after a credit rating agency revised the outlook while retaining the credit rating of the company.

Jun 12, 2019 06:06 IST capital market

The announcement was made after market hours yesterday, 11 June 2019.

Meanwhile, the S&P BSE Sensex was down by 282.32 points, or 0.71% to 39,668.14.

On the BSE, 1305 shares were traded in the counter so far compared with average daily volumes of 1850 shares in the past two weeks. The stock had hit a high of Rs 131 and a low of Rs 126.45 so far during the day. It hit a 52-week high of Rs 520 on 15 June 2018 and a 52-week low of Rs. 120 on 7 June 2019.

Simplex Infrastructures announced that the credit rating agency CARE Ratings had revised the outlook on companys long-term bank facilities, long/short-term bank facilities and non-convertible debentures to negative from stable. However, the rating on companys long-term bank facilities, long/short-term bank facilities and non-convertible debentures was kept unchanged at CARE A-.

CARE Ratings said that the outlook has been revised to Negative considering the elongation in collection period leading to deterioration of working capital cycle and high utilization of working capital limits. The outlook may be revised to stable if the company is able to bring down its level of debtors and utilize the proceeds thereof towards reduction in debt levels, the ratings agency said.

Simplex Infrastructures reported a rise of 14.5% in the net profit to Rs 33.61 crore on a 4.5% reduction in the net sales to Rs 1574.70 crore in Q4 March 2019 over Q4 March 2018.

Simplex Infrastructures is engaged in the business of contract constructing infrastructural facilities. The Companys segments include Construction business and others.

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