Bank loan

CARE revises ratings of Akshar Spintex bank credit facilities

Akshar Spintex Ltd has informed that ratings have been assigned to the Company by CARE Ratings Limited for the Company’s bank loan facilities totaling Rs20.02cr.

Long-term bank facilities were assigned a CARE BB + / Stable rating while short-term ratings were reaffirmed at CARE A4.

According to the Rationale Report, the revision of the long-term ratings assigned to Akshar Spintex Limited (ASL) bank facilities was mainly due to the improvement in profitability and debt coverage indicators in FY21 ( refers to the period from April 1 to March 31).

Ratings, moreover, continue to rely on experienced developers, the location advantage of being present in Gujarat’s cotton production belt, the availability of tax advantages from the government and a comfortable capital structure.

Ratings, however, remain limited due to the moderate scale of operations and stretched liquidity as well as the sensitivity of its profitability to volatile commodity prices, coupled with ASL’s presence in a highly fragmented cotton industry. and competitive.

At around 3:10 p.m., Akshar Spintex was trading down 4.66% to Rs 27.60 per coin on Sensex.