Icra lowers rating of Deepak Fertilisers

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Updated: June 23, 2016 8:46:10 AM

Rating agency Icra has downgraded the long term rating assigned to the R600 crore non-convertible debenture programme of Deepak Fertilisers & Petrochemicals Corporation(DFPC) and R141.44 crores term loans of DFPC to ‘AA-’ from ‘AA’ with a ‘negative’ outlook.

Icra attributed the downgrade to the deterioration in the financial profile of DFPC owing to the continued regulatory overhang over the gas supply issue and the recovery of unintended benefits from players manufacturing Nutrient “N” using domestic gas. (Reuters)Icra attributed the downgrade to the deterioration in the financial profile of DFPC owing to the continued regulatory overhang over the gas supply issue and the recovery of unintended benefits from players manufacturing Nutrient “N” using domestic gas. (Reuters)

Rating agency Icra has downgraded the long term rating assigned to the Rs600 crore non-convertible debenture programme of Deepak Fertilisers & Petrochemicals Corporation(DFPC) and Rs141.44 crores term loans of DFPC to ‘AA-’ from ‘AA’ with a ‘negative’ outlook.

Icra attributed the downgrade to the deterioration in the financial profile of DFPC owing to the continued regulatory overhang over the gas supply issue and the recovery of unintended benefits from players manufacturing Nutrient “N” using domestic gas.

ALSO READ: Deepak Fertilisers shares gain after govt agrees to release Rs 485 crore subsidy

Bloomberg data shows that at the end of March 2016 the firm’s total debt stood at Rs1898.5 crore. In FY16, net profit was Rs115.3 crore on the back of Rs4326.95 crore in revenues.

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