Acuite reaffirms ratings of Goa Carbon’s credit facilities; Stock tumbles

Acuité has reaffirmed the long term rating of ‘ACUITE BBB- ’ and the short term rating of ‘ACUITE A3+’ to the Rs273cr bank facilities of Goa Carbon Limited (GCL). The outlook is ‘Stable’.

The rating reaffirmation considers the comfort drawn from GCL’s established presence in the CPC segment and relations with reputed customers and suppliers, extensive experience of the promoters.

Moreover, the rating also factors in the improvement in the operating margins as compared to the losses incurred by the company earlier. The EBITDA margin stood at 1.78 per cent in FY2021 as against (3.52) per cent in FY2020.

The rating is, however, constrained by the exposure to customer concentration risk, working capital intensive operations and regulatory risks.

On Sensex, at around 2:32 PM, Goa Carbon was trading at Rs390 apiece down by Rs2.2 or 0.56%.

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