Brickworks downgrades rating of Dredging Corporation's Free Bond issue worth Rs58.88 crore

26 Aug 2022 , 03:05 PM

Dredging Corporation of India Limited informed that Brickwork Ratings has downgraded the rating with a revision in the outlook for the outstanding Tax-Free Bond issue of Rs58.88 crore of the company.

Brickworks has revised the rating to ‘BWR A+’ with a Negative outlook.

BWR has downgraded ratings due to continued subdued margins with frequent losses in the last three fiscals, less-than-anticipated improvement in profitability over the last two years, and frequent short-term liquidity constraints due to the company’s inability to generate sufficient cash flow through operations to cover its operating expenses on time.

However, the rating is backed by the company’s more than four-decade track record, continuing significant market dominance in India’s dredging operations, constant operational revenues over the years, modest order book position, good financial structure, and stable industry outlook.

The company’s outlook has been revised from ‘Stable’ to ‘Negative,’ owing to the company’s ongoing intermittent liquidity challenges.

At around 3.08 PM, Dredging Corporation was trading at Rs287.80 up by 1.14% from its previous closing of Rs284.55 on the BSE. The scrip  touched intraday high and low of Rs294 and Rs284.55 respectively.

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