Interviews
Spinners' financial risk profiles weak historically
21 Dec '10
4 min read
Says Mr. R Vasudevan, Head, CRISIL Ratings, “Yarn manufacturers are likely to resume capacity expansion from 2011-12 to meet the increasing demand: the fact that players have been operating at more than 90 per cent of capacity from 2009-10 implies that fresh additions to capacity will be necessary if they are to meet the expected demand.” Debt funding of capex will result in deterioration of players' capital structure. Adds Mr.Vasudevan, “Strong operating cash flows underpinned by healthy demand and robust margins will support spinners' financial risk profiles, and players that fund capex with a prudent debt-equity mix are likely to have their ratings upgraded in the next 12 to 18 months”.
Credit Rating Information Services of India Limited (CRISIL) is India's leading Ratings, Research, Risk and Policy Advisory company. CRISIL leverages its core strengths of credibility and analytical rigour to deliver opinions and solutions, that help clients mitigate and manage their business and financial risks, make markets function better, and help shape public policy.
Credit Rating Information Services of India Limited (CRISIL) is India's leading Ratings, Research, Risk and Policy Advisory company. CRISIL leverages its core strengths of credibility and analytical rigour to deliver opinions and solutions, that help clients mitigate and manage their business and financial risks, make markets function better, and help shape public policy.
Credit Rating Information Services of India Limited (CRISIL)
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