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/
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/
