Following is the text of press release issued by
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The ratings reflect
The Company has taken cost control measures to sustain margins. However pressure on the profitability persists as the Company booked a loss in FY19. The Company has modest leveraging and a large asset base. Relatively higher finance cost and low cashflows have resulted in weak coverages. This trend is expected to continue as cashflows may remain suppressed till new properties commence operations.
The management intends to dispose of some of its properties (real estate assets) to supplement its liquidity and meet sizeable upcoming debt repayments. The Company's association with
Ratings are dependent on effective implementation of envisaged strategy to improve cashflows while maintaining modest leveraging and strengthening coverages. Any significant delay in commencement of new projects and/or further deterioration in margins, leading to weak coverages and pressure on liquidity, will have a negative impact on ratings. Meanwhile, maintaining sufficient cushion for debt repayment remains critical.
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