ICRA has re-affirmed the LB- (pronounced L B minus) rating outstanding on the Rs.98.2 crore term loan facilities and the Rs.1.5 crore non-fund based facilities of GTN Industries Limited (“GIL” / “the Company”). ICRA has also re-affirmed the A4 (pronounced A four) rating outstanding on the Rs.61.9 crore fund-based facilities and the Rs.25.7 crore non-fund based facilities of GIL. ICRA has withdrawn the A4 (pronounced A four) rating on the Rs.1.5 crore non-fund based facility of GIL, since the bank has cancelled the said facility.

The re-affirmation of ratings reflects GIL‟s stretched financial profile (as characterized by low cash accruals, high gearing and weak coverage indicators), the intense competition in the highly fragmented spinning industry which restricts pricing flexibility and the vulnerability of textile industry to competition from low-cost countries. The ratings also consider the experience of promoters in the industry, GIL‟s presence in the finer count and value-added yarn segments which entail relatively higher margins and its diversified customer base which mitigates customer concentration.