Rating rationale from CARE ratings on Deepak:
http://www.careratings.com/upload/CompanyFiles/PR/DEEPAK%20FERTILISERS%20&%20PETROCHEMICALS%20CORPORATION%20LIMITED-10-20-2015.pdf
Reasons for downgrade being:
1. Higher reliance on trading activity leading to a deterioration in the financial profile marked by decline in profitability margins
2. Increased debt levels (being debt focused, the agency has also taken into account debt funded capex pertaining to capacity augmentation of Bentonite Sulphur (BENSULF) and NPK fertilizers
3. Continued reliance on natural gas at market rate vis-à-vis administered price mechanism (APM) rates
4. Likely recovery of differential pricing on account of domestic natural gas at APM vis-à-vis natural gas at spot prices further to the circulars issued by the government
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