Long term rating has been revised to [ICRA] A- and short term rating has been revised to [ICRA] A2+. The outlook has been revised to stable from negative.
The rating revision factors in the subdued growth in Orbit Exports Limited’s (OEL) turnover over the last three fiscals.
The rating also takes into consideration the high working capital intensive nature of operations given the high inventory levels as well as stretched receivables.
The ratings, however, continues to positively consider the extensive experience of the promoters in the textile industry and the comfortable capital structure with a gearing ratio of 0.10 time as on March 31, 2020.
Orbit Exports ended at Rs59.10 apiece down by Rs0.7 or 1.17% from its previous closing of Rs59.80 apiece on the BSE.