Brickwork reaffirms credit ratings of Manomay Tex India's bank loan facilities

12 Jan 2022 , 01:34 PM

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 118.47 Crs. of Manomay Tex India Ltd.

Long-term ratings reaffirmed at BWR BBB/Stable while short-term rating has been reaffirmed at BWR A3+.

As per rationale report, reaffirmation in the ratings of Manomay Tex India Ltd. ( MTIL or the company) factors in experience of the promoters, higher than expected revenues during FY21, increase in exports and the proposed capex for upgradation in plant and machinery and expansion in production capacities.

The rating is, however, constrained by thin profit margins, higher than expected gearing ratios and increased competition and fragmentation in the industry.

Overall financial risk profile of the company is moderate with higher than expected gearing ratios and comfortable debt coverage indicators and adequate liquidity in the company.

BWR believes the Manomay Tex Pvt Ltd.’s business risk profile will be maintained over the medium term. The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term.

At around 1:34 PM, Manomay Tex India was trading at Rs57.20 per piece up by 0.35% on the BSE.