OTHER GROUP COMPANIES
market

Ind Ra affirms credit rating of JK Tyre subsidiary Cavendish Industries; Stock trades flat

The Outlook revision reflects Ind-Ra’s expectation of the consolidated net leverage remaining elevated in FY23.

June 28, 2022 11:16 IST | India Infoline News Service
India Ratings and Research Pvt. Ltd. (Ind-Ra) has affirmed the Long-Term Issuer Rating at ‘IND A-’ and revised the outlook to Negative from Stable of Cavendish Industries Limited (CIL), a subsidiary of JK Tyre & Industries Limited’s (JKTIL)

Long term loans ratings affirmed at IND A- whereoutlook revised to negative from stable. Also, short term rating has  been affirmed at IND A2+.

As per  the rating rationale report, Ind-Ra continues to take a consolidated view of JKTIL and its subsidiaries to arrive at the ratings, due to the strong operational and strategic linkages among them, driven by similar business profiles, and a common treasury and management team.

Further, the Outlook revision reflects Ind-Ra’s expectation of the consolidated net leverage remaining elevated in FY23, owing to challenges related to EBITDA margin improvement, additional working capital requirements, and debt-funded capex plans.

Any decrease in the company’s profitability or increase in the working capital requirements, driven by raw material price volatility, could lead to deterioration in the net leverage.

At around 11:13 AM, JK Tyre & Industries was trading flat at Rs102.10 per share on the BSE.

OPEN A DEMAT ACCOUNT & Get
FREE Benefits Worth 5,000

FEATURED ARTICLE

BLOGS

Open Demat Account

  • 0

    Per Order for ETF & Mutual Funds Brokerage

  • 20

    Per Order for Delivery, Intraday, F&O, Currency & Commodity