Acuite downgrades Goa Carbon ratings on Rs 273 crore bank facilities

Acuite has downgraded its long term rating to BBB-minus from BBB and reaffirmed its short term rating of A3-plus on Rs 273 crore bank facilities of Goa Carbon Ltd.

Acuite has downgraded its long term rating to BBB-minus from BBB and reaffirmed its short term rating of A3-plus on Rs 273 crore bank facilities of Goa Carbon Ltd. However, it revised the outlook from negative to stable.

Acuite said the rating downgrade is mainly on account of continued moderation in the operating performance for FY20. The revenues deteriorated to Rs 416.82 crore in FY20 from Rs 461.96 crore in FY19. The company made losses on both the operating as well as net levels marked by EBITDA losses of Rs 14.67 crore and PAT losses of Rs 27.75 crore for FY20. The losses were mainly on account of lower sales realisation and demurrage expenses.

Acuite said the company's ability to improve its operating performance and to manage its cash flows efficiently will be a key monitorable. Goa Carbon is engaged in manufacturing and marketing calcined petroleum coke. It has manufacturing facilities located at Goa, Bilaspur and Paradeep with a combined capacity of 2.25 lakh tonnes per annum.

The company is a part of Dempo Group which has presence in iron ore mining and exports, calcined ptroleum coke, construction, publishing, ship building, travel and trade. (ANI)