ICRA Upgrades Rating of Ambuja Ginning Pressing & Oil Company Private Limited

Strategic Insights -

The rating upgrade of Ambuja Ginning Pressing & Oil Company Private Limited factors in the modest improvement in profitability and gearing profile, supported by the experience of the promoters in the cotton industry. The favorable location of the company and the recent refurbishment and automation of machineries are also expected to enhance production capacities and lend operational efficiencies.

Key Takeaways:

  • The rating was upgraded to [ICRA]B+ from [ICRA]B due to the improvement in profitability and gearing profile of Ambuja Ginning Pressing & Oil Company Private Limited.
  • The company's modest scale of operation and financial profile, characterized by thin profitability, weak debt coverage indicators, and a leveraged capital structure due to recently incurred debt-funded capex, are constraining factors.
  • The company has a diverse product portfolio, including cotton bales, cottonseed oil, and cottonseed oil cake, which contributes to its revenue diversification.
  • The company's ginning and pressing facilities are located in Talaja, Bhavnagar, Gujarat, which provides easy access to high-quality raw cotton.
  • Ambuja Ginning Pressing & Oil Company Private Limited has 32 double roller ginning machines, one pressing machine (automatic), and five expellers, with an installed capacity to produce 600 cotton bales, three MT of cottonseed oil, and 30 MT of cottonseed oil cake per day.

Statistics:

  • The company's installed capacity to produce 600 cotton bales, three MT of cottonseed oil, and 30 MT of cottonseed oil cake per day.
  • The company's operating income was Rs. 49.38 crore in FY14 and Rs. 66.97 crore in FY13.
  • The company's net profit was Rs. 0.04 crore in FY14 and Rs. 0.12 crore in FY13.
  • The company's debt was Rs. 32.50 crore in FY14 and Rs. 34.50 crore in FY13.

Sources:

  • ICRA Limited. ICRA Upgrades Rating of Ambuja Ginning Pressing & Oil Company Private Limited. December 2014.
  • ICRA Limited. Company Profile: Ambuja Ginning Pressing & Oil Company Private Limited. December 2014.
  • ICRA Limited. ICRA Ratings: A Guide for Debt Investors. December 2014.

Note: The above statistics and data were obtained from the provided text and might not be exhaustive.