CARE revises rating on Trident Texofab's bank facilities; Stock sheds 2%

The ratings continue to be constrained by its moderate scale of operations coupled with low profit margins.

Aug 25, 2021 01:08 IST India Infoline News Service

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Trident Texofab has informed that, Rating Committee of CARE has reviewed its ratings on the basis of recent developments including operational and financial performance of Company.

Long term ratings has been revised to CARE BB- with Stable outlook.

Revision in the rating assigned to the bank facilities of Trident Texofab Limited (TTL) factors in, decline in scale of operation, deterioration in capital structure and debt coverage indicators and elongation in working capital cycle due to stretched collection and inventory holding period in FY21.

The ratings continue to be constrained by its moderate scale of operations coupled with low profit margins, leveraged capital structure, weak debt coverage indicators, working capital-intensive nature of operation with stretched liquidity position.

The rating further continues to be constrained by susceptibility of profit margins due to volatile material prices and presence in competitive and fragmented industry. The rating however, continues to derive strength from long track record of operation coupled with experienced promoters in the business.

At around 1:30 PM, Trident Texofab was trading at Rs34.95 per piece down by 2.10% on Sensex.

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