“The above action has been taken at the request of AGC and ‘No Objection Certificate’ received from the banks that have extended the facilities rated by CARE,” the company shared CARE Rating rationale in a regulatory filing on Thursday.
It further said, the rating continues to derive strength from experienced promoters (viz. Essar group) and management, the company’s sound technical knowhow and domain expertise translating in to significant improvement in performance of AGC’s subsidiary viz. Black Box Corporation Limited during FY20 and 9MFY21.
The rating also continue to factor in strong and diversified client base, diversified capabilities in Information and Communication Technology solutions, improved collection period in FY20 marked by securitization of receivables, and significant decrease in corporate guarantee extended to subsidiary. The ratings are however tempered by competitive nature of the IT/ITeS industry and foreign exchange risk faced by the company.