Apparel, Fashion & Retail | News & Insights

Zodiac Clothing’s bank facilities receive a BB+ rating from CARE

Published: October 18, 2021
Author: Manali bhanushali
CARE Ratings Ltd. has issued the lengthy rating of CARE BB+; Positive to Zodiac Clothing Limited’s Rs 54 crore Line of Credit. The ratings granted to Zodiac Clothing Limited (ZCCL) bank facilities continue to draw strength from the company’s lengthy track history and established a strong brand position in the men’s clothing market, which is reinforced by a broad geographic footprint. The ratings take into account the company’s acceptable capital base and acceptable financial picture. Furthermore, the ratings take into account the sponsor’s experience in the apparel market as well as the financial support offered to the company,” according to the company’s CARE Rating reasoning. The rating strengths are mitigated, however, by the large drop in scale of production over the years, which has resulted in net losses and an extended working capital ratio, as well as the impact of the pandemic. The company’s price flexibility is limited due to fierce rivalry from both organised and unorganised industry rivals. CARE anticipates that PBILDT margins will grow in tandem with the scale of production in the future. The same is still a vital rating measurable.

Related Posts

Cotton yarn from North India may get better in April.