GPT Infraprojects share price slips 3% on ratings downgrade
Rating agency CARE has downgraded rating of company's long term bank facilities of Rs 554.21 crore to BBB-/Stable from BBB/Stable.
December 27, 2019 / 10:14 AM IST
GPT Infraprojects share price slipped 3 percent intraday on December 27 after CARE downgraded rating of the company's long-term bank facilities.
Rating agency CARE has downgraded rating of company's long-term bank facilities of Rs 554.21 crore to BBB-/Stable from BBB/Stable.
The revision in the ratings assigned to GPT Infraprojects (GPTIL) takes into account continued elongation in already high collection period in FY19 & H1FY20 leading to high working capital cycle and stretch in liquidity as indicated in high utilization of working capital limits on continuous basis, as per press release.
Further, the rating considers slow movement in execution of large orders due to delay in getting designs approved, handover of sites by clients, delay in receipt of payments, etc. as well as audit observations/qualifications.
The rating continues to derive comfort from the long experience of promoters, strong order book position and reputed client portfolio, it further added.
At 09:41 hrs GPT Infraprojects was quoting at Rs 40.20, down Rs 1.30, or 3.13 percent on the BSE.