Sanghvi Movers rating reaffirmed

The A (single A) rating assigned to the Rs. 5 crore non- convertible debenture issue of Sanghvi Movers (SML) has been reaffirmed. The FA plus (as FA plus) rating assigned to the company's fixed deposit programme has been reaffirmed.

The above ratings reflect SML's status as the largest operator in the non marine crane services industry and a financial risk profile that is consistent with the rating category and characterised by strong internal accruals and modest interest coverage levels (as measured by PBDIT/Interest and Finance Charges).

The ratings also factor in the significant decline in revenues in the half year ended September 30, 2000 due to the ongoing sluggishness in infrastructure investments, the significant variability inherent in the company's revenue streams and its limited bargaining power with its major customers.

SML is engaged in the business of crane rentals for heavy lift jobs, plant erection, and plant maintenance and is the largest crane rental company in the country. In 1999-2000, it posted a PAT of Rs. 4.03 crores on a net sales of Rs. 33.8 crores.

- Corporate Bureau

Send this article to Friends by E-Mail

Section  : Business
Previous : Crisil assigns first rating to multilateral
           guaranteed instrument
Next     : Jay Bharat Maruti retains rating