CARE Rating Agency has assigned CARE BB [Double B] rating to
Long-term Bank Facilities for the amount of Rs 44.73 crore of Pochiraju
Industries Ltd.
The rating assigned is constrained by the concentrated revenue stream, volatility in the new business segment of Biopharma, fluctuating input prices, project implementation risk, constrained liquidity position with internal accruals diverted towards capex and working capital intensive nature of operation. The rating, however, is underpinned by the satisfactory experience of the promoter, established research & development facilities, increasing scale of operation with satisfactory profitability, satisfactory capital structure and moderate industry growth prospects. The ability of the company to complete the ongoing project & garner benefit from the biopharma division and efficiency manage working capital requirements are the key rating sensitives.
The rating assigned is constrained by the concentrated revenue stream, volatility in the new business segment of Biopharma, fluctuating input prices, project implementation risk, constrained liquidity position with internal accruals diverted towards capex and working capital intensive nature of operation. The rating, however, is underpinned by the satisfactory experience of the promoter, established research & development facilities, increasing scale of operation with satisfactory profitability, satisfactory capital structure and moderate industry growth prospects. The ability of the company to complete the ongoing project & garner benefit from the biopharma division and efficiency manage working capital requirements are the key rating sensitives.