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Sadbhav Engineering drops after CARE downgrades ratings

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Sadbhav Engineering hit a lower circuit of 5% to Rs 32.65 after credit rating agency, CARE, downgraded rating on the company's long term bank facilities to A-/(Stable) from A.

Credit rating agency, Credit Analysis & Research (CARE) has downgraded Sadbhav Engineering's long-term bank facilities worth Rs 701.93 crore to CARE A- (Stable) from CARE A. The long-term/short-term bank facilities of Rs 2,000 crore was revised to CARE A-; Stable/CARE A2+ from CARE A /CARE A1. Long-term non-convertible debenture - III worth Rs 170 crore and long-term non- convertible debenture - V worth Rs 44 crore were downgraded to CARE A- (Stable) from CARE A.

Meanwhile, short-term non-convertible debenture - VI worth Rs 56 crore was rated CARE A2+ from CARE A1. Commercial Paper worth Rs 150 crore was also upgraded to CARE A2+ from CARE A1 and short-term bank facilities worth Rs 20 crore were given a CARE A2+ rating from CARE A1. The disclosure was made after trading hours yesterday, 24 March 2020.

Shares of Sadbhav Engineering slumped 58.32% in nineteen trading sessions to its current market price of Rs 32.65 from its recent closing high of Rs 78.35 hit on 26 February 2020.

On a consolidated basis, Sadbhav Engineering reported a net loss of Rs 69.79 crore in Q3 December 2019 compared with a net profit of Rs 15.32 crore in Q3 December 2018. Net sales tanked 47.9% to Rs 681.29 crore in Q3 December 2019 over Q3 December 2018.

Sadbhav Engineering is engaged in the construction and maintenance of roads and highway, and irrigation system (canal). The firm is also engaged in the site preparation for mining, including overburden removal and other development. The company's segments include EPC Contracts and BOT (Toll & Annuity).

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 25 2020. 12:05 IST
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