Rashtriya Chemicals & Fertilizers (RCF) tanked 10.47% to Rs 30.80 after the credit rating agency, ICRA downgraded the company's bank facilities and non-convertible debentures (NCDs) while reaffirming its commercial paper programme.
ICRA has downgraded RCF's bank facilities worth Rs 5,100 crore and non-convertible debentures (NCDs) worth Rs 500 crore to '[ICRA] AA-(Stable)' from '[ICRA] AA(Negative)'. Downgrade in the long-term rating takes into account the weakening cost competitiveness and tightening of energy norms by Government of India.
Meanwhile, commercial paper programme worth Rs 3,000 crore was reaffirmed at '[ICRA] A1+'.
The announcement was made after trading hours on Friday, 13 March 2020.
RCF's consolidated net profit jumped 70% to Rs 78.42 crore on a 5.4% decline in net sales to Rs 2,225.87 crore in Q3 December 2019 over Q3 December 2018.
RCF is a fertilizer and chemical manufacturing company. The firm manufactures urea, complex fertilizers, bio-fertilizers, micro-nutrients, water soluble fertilizers, soil conditioners and a range of industrial chemicals. The company operates through the segments, including Trombay, Thal and Trading.
As of 31 December 2019, the Government of India held 75% stake in the company.
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