Aug 27, 2015 - Brickwork Rating Revises ratings to 'BWR C' for Amtek Auto Ltd's ... sell or hold the rated instrument an
Rating Rationale Brickwork Rating Revises ratings to ‘BWR C’ for Amtek Auto Ltd’s secured, redeemable Non-Convertible Debentures issues of ₹ 100 Cr, ₹ 300 Cr & ₹ 84 Cr with tenor upto 5 Years Brickwork Ratings (BWR) has revised the Rating1 for Amtek Auto Ltd’s (“AAL” or the ‘Company’) secured, redeemable NCD issues of ₹ 100 Cr, ₹ 300 Cr & ₹ 84 Cr with tenor upto 5 Years as follows: Instruments
Amount (₹ Cr)
Rating
Issue Date
NCD
100
BWR C (Revised)
Jan 2015
NCD
300
BWR C (Revised)
Feb 2015
NCD
84
BWR C (Revised)
April 2015
Rating History BWR A+ (July 2015) (Outlook: Stable) BWR A+ (July 2015) (Outlook: Stable) BWR A+ (July 2015) (Outlook: Stable)
The rating revision reflects the persisting liquidity issues of the company leading to stress in debt servicing, deteriorating financial risk profile of the company marked by decline in financial performance, expected subdued performance in near term mainly on account of depressed market sentiments and risks pertaining to recent aggressive pace of acquisitions. The rating is further constrained by increasing gearing levels on account of capex and hence interest burden, relatively high operating cycle, low return on capital employed, significant exposure to foreign subsidiaries and business associates and inherent risk associated with the automotive and nonautomotive components industry. Amtek Auto Ltd, New Delhi is a listed (NSE & BSE) company. AAL is engaged in the manufacturing of various automotive/non-automotive forged/casted/machined and assembled components. The company has a product portfolio of about 300 varieties of components and assemblies such as ring gears, crankshaft assemblies, gear pinions, pivot arm, connecting rod assemblies, etc. Analyst Contact Relationship Contact
[email protected] [email protected] Phone Media Contact 1-860-425-2742
[email protected] Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons.
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Please refer to www.brickworkratings.com for definition of the Ratings
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27 Aug 2015
