Brickwork Ratings upgrades BWR BB+/Stable/BWR A4+ ratings for the Bank Loan Facilities of Rs31.43cr of
Ganga Paper India Ltd As per rationale, upgrade in the ratings of Ganga Paper India factors in growth in its revenues, improvement in overall business and financial risk profile in FY21 with growing scale of operations and stable operating profit margins owing to better utilisation of manufacturing capacities.
Gearing and debt coverage ratios have witnessed sustained improvement during previous years owing to growth in profits whereas borrowing expenses declined. Liquidity in the company is adequate as indicated by NWC, working capital cycle and cash accruals vis-a-vis term debt obligations.
The rating is, however, constrained by high competition and fragmentation, customer concentration risks, forex and other risks.
BWR believes the Ganga Paper India 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.
Ganga Papers India ended at Rs79 apiece up by Rs1.05 or 1.35% on the BSE.
