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    Mahindra Sona R 22102013

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    ukal
    ICRA has reaffirmed the [ICRA]A+ rating to the Rs. 15. Crore (enhanced from Rs. 10. Crore) fund based facilities of Mahindra Sona Limited (MSL) +. The outlook on the long term rating is stable.

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    Mahindra Sona R 22102013

    Uploaded by

    ukal
    302 views3 pages
    ICRA has reaffirmed the [ICRA]A+ rating to the Rs. 15. Crore (enhanced from Rs. 10. Crore) fund based facilities of Mahindra Sona Limited (MSL) +. The outlook on the long term rating is stable.

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    Mahindra Sona r 22102013

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    ICRA has reaffirmed the [ICRA]A+ rating to the Rs. 15. Crore (enhanced from Rs. 10. Crore) fund based facilities of Mahindra Sona Limited (MSL) +. The outlook on the long term rating is stable.

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    © All Rights Reserved
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    Download as pdf or txt
    302 views3 pages

    Mahindra Sona R 22102013

    Uploaded by

    ukal
    ICRA has reaffirmed the [ICRA]A+ rating to the Rs. 15. Crore (enhanced from Rs. 10. Crore) fund based facilities of Mahindra Sona Limited (MSL) +. The outlook on the long term rating is stable.

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    Mahindra Sona Limited

    Instrument Amount Rating Action


    Rs. Crore October 2013
    Term Loan 10.0 [ICRA]A+ (Stable) Assigned
    Fund Based Limit 15.0 [ICRA]A+ (Stable) Reaffirmed
    Non-Fund Based Limit 10.0 [ICRA]A1+ Reaffirmed

    ICRA has reaffirmed the [ICRA]A+ (pronounced ICRA A plus) rating to the Rs. 15.0 crore (enhanced
    from Rs. 10.0 crore) fund based facilities of Mahindra Sona Limited (MSL)

    . The outlook on the long


    term rating is stable. ICRA has also assigned a rating of [ICRA]A+ to the Rs. 10.0 crore term loans of
    MSL. The outlook on the long term rating is stable.

    ICRA has also reaffirmed the short term rating of [ICRA] A1+ (pronounced as ICRA A one plus) to the
    Rs. 10.0 crore (enhanced from 6.0 crore) non-fund based facilities of MSL.
    *


    The rating reaffirmations continue to reflect the companys established business relationship with
    leading domestic OEMs, extensive experience of promoters in the auto/auto ancillary business
    facilitating access to international auto components manufacturers for exports and technical
    collaborations, diversified revenue mix, strong focus on product innovation leading to better market
    penetration and increase in share of business with clients, strong capital structure with debt free
    operations and healthy cash flows.

    The long term rating however continues to remain constrained by the high concentration of business
    with M&M and the weak macroeconomic fundamentals impacting automotive growth. The ratings also
    factor in the companys exposure to foreign currency fluctuation risk although the risk is partially
    mitigated on account of natural hedging through imports and through forward covers.

    Company Profile
    The company has a three manufacturing units at Nashik. This plant commenced production in 1979
    following a joint venture between M&M and Dana Corporation USA, named Mahindra Spicer Limited.

    In 1984, Mahindra Spicer Limited merged with M&M and came to be known as the Automotive
    Component Unit of M&M. In March 1995, M&M and Sona Koyo Steering Systems Ltd formed a joint
    venture which was named Mahindra Sona Limited. The assets of the automotive component unit of
    MML were transferred to MSL for a consideration of Rs. 14.0 crore. Additionally a non-compete fee of
    Rs. 2.0 crore was also paid to MML.

    The Company is engaged in designing and manufacturing of a wide range of auto ancillary products
    such as propeller shafts, clutches, UJ kits, steering joints, steering column parts and axle shafts for
    commercial vehicles.

    Recent Results
    The company reported a net profit of Rs. 28.1 crore on a turnover of Rs. 360.6 crore in FY13 as
    compared to a net profit of Rs. 27.8 crore on a turnover of Rs. 307.9 crore in FY12.
    October 2013
    For further details, please contact:
    Analyst Contact:
    Mr. Subrata Ray (Tel. No. +91 22 6179 6386)
    [email protected]

    Relationship Contacts:
    Mr. L. Shivakumar, (Tel. No. +91-22-6179 6393)
    [email protected]

    * For complete rating scale and definitions please refer to ICRA's Website www.icra.in or other ICRA Rating
    Publications




    Copyright, 2013, ICRA Limited. All Rights Reserved.
    Contents may be used freely with due acknowledgement to ICRA
    ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. The ICRA
    ratings are subject to a process of surveillance which may lead to a revision in ratings. Please visit our website
    (www.icra.in) or contact any ICRA office for the latest information on ICRA ratings outstanding. All information
    contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although
    reasonable care has been taken to ensure that the information herein is true, such information is provided as is
    without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or
    implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein
    must be construed solely as statements of opinion and ICRA shall not be liable for any losses incurred by users from
    any use of this publication or its contents



    Registered Office
    ICRA Limited
    1105, Kailash Building, 11th Floor, 26, Kasturba Gandhi Marg, New Delhi 110001
    Tel: +91-11-23357940-50, Fax: +91-11-23357014

    Corporate Office
    Mr. Vivek Mathur
    Mobile: 9871221122
    Email: [email protected]

    Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002
    Ph: +91-124-4545310 (D), 4545300 / 4545800 (B) Fax; +91- 124-4050424

    Mumbai
    Mr. L. Shivakumar
    Mobile: 9821086490
    Email: [email protected]

    3rd Floor, Electric Mansion, Appasaheb Marathe Marg,
    Prabhadevi, Mumbai - 400 025
    Ph : +91-22-30470000, 24331046/1053
    /1062/1074/1086/1087, Fax : +91-22-24331390
    Kolkata
    Mr. Jayanta Chatterjee
    Mobile: 9845099459
    Email: [email protected]

    A-10 & 11, 3rd Floor, FMC Fortuna, 234/3A, A.J.C. Bose
    Road Kolkata700020
    Tel: +91-33-22876617/8839 22800008/22831411
    Chennai
    Mr. Jayanta Chatterjee
    Mobile: 9845099459
    Email: [email protected]

    5th Floor, Karumuttu Centre, 498 Anna Salai, Nandanam,
    Chennai-600035.
    Tel + (91 44) 45964300, Fax + (91 44) 9434 3663

    Bangalore
    Mr. Jayanta Chatterjee
    Mobile: 9845099459
    Email: [email protected]

    'The Millenia',
    Tower B, Unit No. 904, 9th Floor, Level 9, 19-14, 1 & 9,
    Murphy Road, Bangalore - 560 008
    Tel:91-80- 43396400 Fax:91-80-43396409

    Ahmedabad
    Mr. L. Shivakumar
    Mobile: 989986490
    Email: [email protected]

    907 & 908 Sakar -II, Ellisbridge,
    Ahmedabad- 380006
    Tel: +91-79-26585049, 26585494, 26584924,
    Tele Fax: +91-79-25569231
    Pune
    Mr. L. Shivakumar
    Mobile: 989986490
    Email: [email protected]

    5A, 5th Floor, Symphony, S.No. 99, CTS 3909, Range Hills
    Road, Shivajinagar,Pune-411 090
    Tel: + 91-20-25561194-25560196; Fax: +91-20-25561231
    Hyderabad
    Mr. Jayanta Chatterjee
    Mobile: 9845099459
    Email: [email protected]

    4th Floor, SHOBHAN, 6-3-927/A&B. Somajiguda, Raj
    Bhavan Road, Hyderabad500083
    Tel:- +91-40-40676500

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