The short-term rating has been reaffirmed at CARE A2+.
The outlook revision reflects CARE’s expectations that the Company’s business and financial risk profile will continue to improve over the medium term.
The ratings continue to factor in the experience of management in the manufacturing of mechanical power transmission solutions like V-Belts which finds application in diverse industries and the strong market position in the after-market industrial segment.
The ratings also derive comfort from established distribution network catering to both domestic and export markets. The ratings also continue to favorably factor in comfortable debt coverage indicators which have been showing an improving trend.
CARE analysed PTL’s credit profile by considering consolidated financial statements of the company owing to financial and operational linkages between the parent, subsidiaries and step-down subsidiaries as well as common management.