CARE Rating has revised its long-term ratings for engineering product company Walchandnagar Industries. The rating agency has revised its rating on the firm's long-term bank facilities to BB+/Stable from BB/Stable.
Discussing the development, GK Pillai, managing director and CEO of the company, said the agency "does not give a real reflection of the company’s business and the long-term plan". “For the last four quarters, the company has been showing positive profits and we still are not accepting the CARE rating of BB plus,” he said.
In terms of cost of borrowing, he added, “Today the bank charges around 15.25 percent as interest rate, I am sure with this revised rating which itself is slightly better, we should be approaching the bank in a day or two and I am hopeful that we should be able to bring down the cost of borrowings."
Speaking about revenue growth, Pillai said, “First nine months have been almost about Rs 265 crore, it is almost same like the last year and we did think that we should be able to touch about Rs 500 crore. Our focus today is not much on the topline, it is more on the bottomline. So year-end, I won’t be able to give you exact numbers but definitely, it will be in-line with last year but the EBITDA will be definitely more than what we had last year.”