CRISIL has downgraded its ratings on the bank facilities of DCM Limited (DCM) to 'CRISIL D/CRISIL D' from 'CRISIL BB+/CRISIL A4+/Watch Negative'. The downgrade reflects delays by DCM in repaying the interest and principal obligation on the term loan.
A term loan installment payment aggregating to Rs. 7.49 crores has been deferred due to temporary cash flow mismatch on account of the ongoing auto downturn which has resulted in substantial reduction in order flow. It is not a material amount in context of the company and Company is working with banks to address the fallout of the auto meltdown which Company hope is temporary.
The ratings continue to reflect the moderate debt protection metrics, stretched working capital cycle, and susceptibility to volatile cotton yarn prices and continues off take from the automobile sector. These weaknesses are partially offset by extensive experience of the promoters and DCM's moderate financial risk profile.
Shares of DCM LTD. was last trading in BSE at Rs.21.9 as compared to the previous close of Rs. 22.2. The total number of shares traded during the day was 1790 in over 45 trades.
The stock hit an intraday high of Rs. 23.05 and intraday low of 19.8. The net turnover during the day was Rs. 39183.