- Non-convertible debentures - Rs. 7.2 crore Rating : B to BB+ (upgraded)
Crisil has upgraded the outstanding 'B' rating assigned to the Rs. 7.2-crore non-convertible debenture issue of Orient Ceramics and Industries Ltd to 'BB+'.
The revision in rating primarily factors in the expected improvement in the company's gearing and interest coverage ratios during the year 1999-2000 and comfortable financial flexibility arising out of relatively low fund requirements and healthy expected cash accruals. However, the rating is constrained by the company's small size relative to competitors, continued pressure on realisations due to prevailing over-capacity in the industry, and increasing competition in the ceramic tiles industry.
Orient Ceramics and Industries is primarily engaged in the manufacture and sale of glazed ceramic wall tiles. The company has an installed capacity of 54,000 tonnes per annum. During the year 1998-99, the company reported net sales of Rs. 49.73 crore, and a net profit of Rs. 55 lakh.