Download SONALIKA (Training Report) PDF

TitleSONALIKA (Training Report)
TagsTractor Four Wheel Drive Transmission (Mechanics) Loader (Equipment) Agriculture
File Size1017.7 KB
Total Pages33
Document Text Contents
Page 32

THE RATIONALES, INTERNATIONAL TRACTORS LIMITED






ICRA has assigned LA+ (pronounced L A plus) to the Rs. 300 million cash credit limits of

International Tractors Limited (ITL). This is the average credit-quality rating assigned by ICRA.

The rated instrument carries average credit risk. ICRA has also assigned A1+ (pronounced A one

plus) to the Rs. 250 million non fund based facilities of ITL. This is the highest-credit-quality rating

assigned by ICRA to short term instruments. The rated instrument carries lowest credit risk. The

rating takes into account ITL’ stability to capture 9-10% of the Indian tractor market within a short

period of existence, strong profitability indicators and favourable financial risk profile with negligible

debt in capital structure.

The rating also factors in the decline in tractor volumes in the domestic market in the current financial

year, the ongoing consolidation in the domestic tractor market which is likely to impact ITL’s

competitive position and ITL’s regional concentration on Northern and Western India.

ITL is taking steps to diversify its revenues by stronger focus on exports and contract manufacturing,

which would help the company with stand the inherent cyclicality associated with domestic market

better. ITL is also expanding its distribution network in South, a key tractor market, which has

witnessed better growth in recent years.

ITL’s joint venture with Magma Shrachi Finance will facilitate financing of its tractors. ITL has

strong profitability indicators , low gearing and healthy coverage indicators. The company also enjoys

significant financial flexibility given modest utilization of its bank limits.

Page 33

REFERENCE






1) The main SONALIKA INTERNATIONAL official website.

http://www.sonalika.com/


2) Search engines.

http://www.google.co.in/


3) RTO data Analysis District Ghaziabad.



4) RTO data comparison chart District Ghaziabad.


http://www.sonalika.com/
http://www.google.co.in/

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