Following is the text of press release issued by
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The ratings recognize
Demand from textile is expected to remain low despite eventual easing of lockdown and resumption of operations. The Company managed to sustain its revenue during these challenging times through product diversification. The Company has introduced multipurpose disinfectant / sanitizer products to support its business profile. Meanwhile, the financial risk profile remains strong characterized by efficient working capital management and strong coverages.
The Company has converted long term loan obtained for an associated company into ordinary shares resulting in improved leveraging. Leveraging may go up once expansion project related borrowings are obtained but will remain manageable. Ratings further draw comfort from
The ratings are dependent on improved competitiveness of the Company through product diversification to mitigate slowdown in demand. Timely execution of the expansion plan and translation of the same into better profitability would positively impact the ratings. Meanwhile, smooth operations from the current plant would remain important. Maintaining strong coverages and sustainable leveraging will remain critical.
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