August 17, 2012 CARE REAFFIRMS THE RATINGS ASSIGNED TO ...
August 17, 2012 CARE REAFFIRMS THE RATINGS ASSIGNED TO ...
August 17, 2012 CARE REAFFIRMS THE RATINGS ASSIGNED TO ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>August</strong> <strong>August</strong> 1<strong>17</strong>,<br />
1 , <strong>2012</strong><br />
<strong>2012</strong><br />
Press Release<br />
<strong>CARE</strong> <strong>CARE</strong> <strong>REAFFIRMS</strong> <strong>REAFFIRMS</strong> <strong>THE</strong> <strong>THE</strong> <strong>RATINGS</strong> <strong>RATINGS</strong> <strong>ASSIGNED</strong> <strong>ASSIGNED</strong> <strong>TO</strong> <strong>TO</strong> <strong>THE</strong> <strong>THE</strong> BANK BANK FACILITIES FACILITIES OF<br />
OF<br />
BRIDGES<strong>TO</strong>NE BRIDGES<strong>TO</strong>NE INDIA INDIA PVT PVT LTD.<br />
LTD.<br />
Ratings<br />
Ratings<br />
Facilities/Instruments<br />
Facilities/Instruments<br />
Amount<br />
Amount<br />
(Rs. (Rs. crore)<br />
crore)<br />
Ratings Ratings<br />
1 Remarks<br />
Remarks<br />
Long-term / Short-term<br />
Bank Facilities<br />
474<br />
(enhanced from Rs.359 crore)<br />
<strong>CARE</strong> AAA/ <strong>CARE</strong> A1+<br />
(Triple A/ A One Plus)<br />
Reaffirmed<br />
Total Total Facilities Facilities<br />
# # 474<br />
474<br />
# # # # <strong>CARE</strong> <strong>CARE</strong> <strong>CARE</strong> <strong>CARE</strong> has has has has withdrawn withdrawn withdrawn withdrawn the the the the long long----term long long term term term rating rating rating rating assigned assigned assigned assigned to to to to term term term term loan loan loan loan of of of of Rs.7.50 Rs.7.50 Rs.7.50 Rs.7.50 crore crore crore crore as as as as the the the the same same same same has has has has been been been been fully fully fully fully<br />
repaid. repaid. repaid. repaid.<br />
Rating Rating Rationale<br />
Rationale<br />
The ratings continue to take into account the strong parentage and technological support from<br />
Bridgestone Corporation, Japan (BSJ), the global leader in the tyre industry; dominant position of<br />
Bridgestone India Private Limited (BSID) in the Passenger Steel Radials (PSR) segment of the Indian<br />
tyre market, established clientele which includes all major passenger car Original Equipment<br />
Manufacturers (OEMs), its healthy financial risk profile marked by very comfortable leverage, high<br />
capitalization due to continuous equity infusion, healthy profitability and consistent growth in scale<br />
of operations with higher share of sales from the replacement market. These credit strengths far<br />
outweigh the challenges of dampening demand from OEMs and replacement market in the shortterm<br />
on account of the slowdown in the automobile industry and economic activity in the country<br />
and susceptibility of its profitability to volatile raw material prices and currency fluctuation.<br />
BSID’s ability to maintain the profitability by managing the risk associated with the volatile raw<br />
material prices and the timely completion and stabilization of its ongoing capacity expansion<br />
project within envisaged cost and time parameters would be the key rating sensitivities.<br />
Background<br />
Background<br />
Background<br />
BSID was initially incorporated in 1996 as a joint venture between BSJ and Associated Cement<br />
Company of India Ltd. (ACC). The plant for manufacturing passenger car tyres which was set up in<br />
1996 commenced production in 1998. In 2003, BSID became a wholly-owned subsidiary of BSJ. With<br />
the equity infusion from Bridgestone Asia Pacific Pvt. Ltd. (BSAP), Singapore, a wholly-owned<br />
subsidiary of BSJ, during CY11 (refers to the period January 1 to December 31) and Q1CY12, the<br />
direct equity holding of BSJ has reduced to 66% as on June 30, <strong>2012</strong>. However, BSJ continues to hold<br />
100% stake of BSID at consolidated level. BSID produces wide range of tyres and tubes for different<br />
vehicles and various types like cross ply tyres, radial tyres, tubeless tyres, steel radial tyres and other<br />
automobile tyres. In terms of unit production for 2011, BSID had a market share of approximately<br />
20% in the passenger car segment. BSID has a network of more than 2,400 dealers across India, and<br />
it receives significant technological support from its parent company, BSJ. The manufacturing<br />
facilities of BSID are located at Pithampur, Madhya Pradesh, with an installed capacity of 5.39<br />
million tyres and 2.39 million tubes per annum as on December 31, 2011.<br />
During CY11 (audited; refers to the period from January 1 to December 31), BSID reported a total<br />
operating income of Rs.1,608 crore (CY10: Rs.1,144 crore) and a PAT of Rs.134 crore (CY10: Rs.121<br />
crore).<br />
1 Complete definitions of the ratings assigned are available at www.careratings.com and in other <strong>CARE</strong><br />
publications.<br />
Credit Analysis & Research Ltd., 4 th Floor, Godrej Coliseum, Somaiya Hospital Road<br />
Sion East, Mumbai – 400 022. INDIA Tel # 022 6754 3456 Fax # 6754 3457
Press Release<br />
As per the provisional results for Q1CY12, BSID reported a total operating income of Rs.488 crore<br />
and PAT of Rs.39 crore.<br />
Analyst Analyst Analyst Contact<br />
Contact<br />
Name: Krunal Modi<br />
Tel # 079-40265614<br />
Mobile # +91 8511190084<br />
Email: krunal.modi@careratings.com<br />
<strong>CARE</strong> <strong>CARE</strong> <strong>CARE</strong> <strong>CARE</strong> has has has has classified classified classified classified instruments instruments instruments instruments rated rated rated rated by by by by it it it it on on on on the the the the basis basis basis basis of of of of complexity. complexit complexit complexity.<br />
y. y. This This This This classification classification classification classification is is is is<br />
available available available available at at at at www.careratings.com. www.careratings.com. www.careratings.com. www.careratings.com. Investors/market Investors/market Investors/market Investors/market intermediaries/regulators intermediaries/regulators intermediaries/regulators intermediaries/regulators or or or or others others others others are are are are<br />
welcome welcome welcome welcome to to to to write write write write to to to to care@careratings.com care@careratings.com care@careratings.com care@careratings.com for for for for any any any any clarifications.<br />
clarifications.<br />
clarifications.<br />
clarifications.<br />
Disclaimer isclaimer<br />
<strong>CARE</strong>’s ratings are opinions on credit quality and are not recommendations to sanction, renew,<br />
disburse or recall the concerned bank facilities or to buy, sell or hold any security. <strong>CARE</strong> has based<br />
its ratings on information obtained from sources believed by it to be accurate and reliable. <strong>CARE</strong><br />
does not, however, guarantee the accuracy, adequacy or completeness of any information and is not<br />
responsible for any errors or omissions or for the results obtained from the use of such information.<br />
Most entities whose bank facilities/instruments are rated by <strong>CARE</strong> have paid a credit rating fee,<br />
based on the amount and type of bank facilities/instruments.<br />
“Credit Analysis and Research Limited proposes, subject to receipt of requisite approvals, market<br />
conditions and other considerations, to make an initial public offer of its equity shares and has filed<br />
a draft red herring prospectus (“DRHP”) with the Securities and Exchange Board of India (the<br />
“SEBI”). The DRHP is available on the website of SEBI at www.sebi.gov.in as well as on the websites<br />
of the Book Running Lead Managers at www.investmentbank.kotak.com, www.dspml.com,<br />
www.edelcap.com, www.icicisecurities.com, www.idbicapital.com, and www.sbicaps.com. Investors<br />
should note that investment in equity shares involves a high degree of risk and for details relating<br />
to the same, see the section titled “Risk Factors” of the DRHP.”<br />
“This press release is not for publication or distribution to persons in the United States, and is not an<br />
offer for sale within the United States of any equity shares or any other security of Credit Analysis<br />
and Research Limited. Securities of Credit Analysis and Research Limited, including its equity<br />
shares, may not be offered or sold in the United States absent registration under U.S. securities laws<br />
or unless exempt from registration under such laws.<br />
Credit Analysis & Research Ltd., 4 th Floor, Godrej Coliseum, Somaiya Hospital Road<br />
Sion East, Mumbai – 400 022. INDIA Tel # 022 6754 3456 Fax # 6754 3457
Press Release<br />
<strong>CARE</strong> is headquartered in Mumbai, with Offices all over India. The office addresses and contact<br />
numbers are given below:<br />
HEAD HEAD OFFICE: OFFICE: MUMBAI<br />
MUMBAI<br />
Mr. Mr. D.R. D.R. Dogra<br />
Dogra<br />
Mr. Mr. RRajesh<br />
RR<br />
ajesh Mokashi Mokashi<br />
Mokashi<br />
Managing Director<br />
Dy. Managing Director<br />
Mobile : +91-98204 16002<br />
Mobile +91-98204 16001<br />
E-mail : dr.dogra@careratings.com<br />
E-mail: rajesh.mokashi@careratings.com<br />
Mr. Mr. Suryanarayan Suryanarayan Iyer Iyer Rangaswamy<br />
Rangaswamy<br />
Mr.Ankur Mr.Ankur Sachdeva<br />
Sachdeva<br />
Senior Vice President – Marketing Vice President – Banks & Financial Services<br />
Mobile: +91 9867365827 Mobile: +91-9819698985<br />
mail: R Suryanarayan@careratings.com Email ankur.sachdeva@careratings.com<br />
CREDIT CREDIT CREDIT ANALYSIS ANALYSIS & & RESEARCH RESEARCH LTD<br />
LTD<br />
HEAD HEAD OFFICE OFFICE 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway,<br />
Sion (East), Mumbai - 400 022 |Tel: +91-022- 6754 3456 | E-mail: care@careratings.com |<br />
Fax: +91-022- 6754 3457.<br />
KOLKATA KOLKATA | Ms. Ms. Ms. Priti Priti Agarwal Agarwal Agarwal | Cell: +91-98319 67110 | Tel: +91-33- 4018 1600/ 1602 |<br />
E- mail: priti.agarwal@careratings.com | 3rd Flr., Prasad Chambers (Shagun Mall Bldg), 10A,<br />
Shakespeare Sarani, Kolkata -700 071<br />
CHENNAI CHENNAI | Mr. Mr. V V V Pradeep Pradeep Kumar Kumar | Cell: +91 9840754521 | Tel: +91-44-2849 7812/2849 0811 | Fax: +91-<br />
44-2849 0876 | Email: pradeep.kumar@careratings.com | Unit No. O-509/C, Spencer Plaza, 5th Floor,<br />
No. 769, Anna Salai, Chennai - 600 002<br />
AHMEDABAD AHMEDABAD | Mr. Mehul Mehul Pandya Pandya | Cell: +91-98242 56265 | Tel: +91-79-40265656 | Fax: +91-79-<br />
40265657 | E-mail:mehul.pandya@careratings.com | 32, Titanium, Prahaladnagar Corporate Road,<br />
Satellite, Ahmedabad - 380 015.<br />
NEW NEW NEW DELHI DELHI | Ms. Ms. Swati Swati Agrawal Agrawal | Cell: +91-981<strong>17</strong> 45677 | Tel: +91- 11- 2331 8701/ 2371 6199 |<br />
E-mail: swati.agrawal@careratings.com | 3rd Floor, B -47, Inner Circle, Near Plaza Cinema, Connaught<br />
Place, New Delhi - 110 001.<br />
BENGALURU BENGALURU | Mr. Mr. Dinesh Dinesh Sharma Sharma | Cell: +91 9900041975| Tel: +91-80-221<strong>17</strong>140 |<br />
E-mail: dinesh.sharma@careratings.com | Unit No. 8, I floor, Commander's Place, No. 6, Raja Ram<br />
Mohan Roy Road, (Opp. P F Office), Richmond Circle, Bangalore - 560 025.<br />
HYDERABAD | Mr. Mr. Saikat Saikat Roy Roy || Tel: +91-40-40102030 |<br />
E-mail: saikat..roy@careratings.com | 401, Ashoka Scintilla | 3-6-520, Himayat Nagar | Hyderabad - 500 029.<br />
PUNE PUNE | Mr. Mr. Rahul Rahul Rahul Patni Patni Patni | Cell: +91-78754 33355 | Tel: +91-20- 4000 9000 |<br />
E-mail: rahul.patni@careratings.com | 9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda,<br />
Senapati Bapat Road, Shivaji Nagar, Pune - 411 015.<br />
Credit Analysis & Research Ltd., 4 th Floor, Godrej Coliseum, Somaiya Hospital Road<br />
Sion East, Mumbai – 400 022. INDIA Tel # 022 6754 3456 Fax # 6754 3457
Change language