KEY RATING DRIVERS
The affirmation reflects TPCL’s moderate scale of operations with revenue of INR715.3m during FY15 (FY14: INR696.6m). The ratings also reflect TPCL’s weak credit profile with interest coverage of 0.9x in FY15 (FY14: 0.9x), net financial leverage 8.4x (8.2x) and EBITDA margins of 6.9% (6.7%).
The ratings also consider TPCL’s moderate liquidity profile with 77% utilisation of the working capital facility for the 12 months ended October 2015.
The ratings are supported by the over three decades of experience of TPCL’s directors in manufacturing fertilisers and the company’s strong relationships with its customers and suppliers.
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