CARE Ratings downgrades FD rating of PC Jeweller Ltd
CARE Ratings Limited has downgraded the ratings of the Fixed Deposit Programme of PC Jeweller Limited (Scrip Code: 534809, Symbol: PCJEWELLER) to CARE B (FD) Stable.
As per the Care Ratings Press Release the 'revision in the rating assigned to the medium term instrument of PC Jeweller Limited (PCJ) factors in stressed liquidity position and deterioration in the financial flexibility of the c9mpany as reflected in instances of overutilization of its fund based and non-fund based limits in past few months, .continuous decline in market capitalization and declining cash and bank balance.
The Company however feels that this Rating is based on factual inaccuracies and there is actually an improvement in the Company's financial parameters between March 31, 2019 and September 30,2019.
There is no increase in the bank borrowing of the company and there is actually a decline of RS.248 crores between March 31, 2019 and September 30, 2019. The Promoter of the Company has infused RS.215 crores of his personal funds in the company to improve its NWC. These funds are non-interest bearing and though the same are currently classified as unsecured loan and taken as liabilities, they will be converted in due course into equity or equity like instrument subject to receipt of necessary approvals and compliance with applicable laws and will further improve the net worth of the Company.
The financials of the Company as on September 30: 2019 shows that the Company has a healthy CR and TOL / TNW. The Company's debt service coverage ratio (EBIT / Intt) for the half year ending September 30, 2019 is also positive.
Shares of PC JEWELLER LTD. was last trading in BSE at Rs.30.05 as compared to the previous close of Rs. 30.1. The total number of shares traded during the day was 325365 in over 959 trades.
The stock hit an intraday high of Rs. 30.85 and intraday low of 29.9. The net turnover during the day was Rs. 9801062.