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GE T&D India receives long-term credit rating downgrade from ICRA

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Capital Market
Last Updated : Feb 19 2020 | 5:31 PM IST

ICRA on Tuesday downgraded long-term rating of GE T&D India to [ICRA]A+ and has reaffirmed the short-term rating at [ICRA]A1+ and the outlook has been revised to stable from negative.

ICRA has downgraded the firm's long-term (fund based working capital facilities) and long-term (non-fund based bank guarantee /letter of credit) to [ICRA] A+ from [ICRA] AA-. The outlook was revised to stable from negative.

The company's short-term (non-fund based bank guarantee /letter of credit) was re-affirmed at [ICRA] A1+.

ICRA stated that the decline in the company's revenues, profitability and increase in working capital cycle were the primary reasons of the downgrade.

Shares of GE T&D India was up 0.71% to Rs 142. In the past one month, the scrip dropped 12.80% to its current market price of Rs 142.

On the technical front, the stock's RSI (relative strength index) stood at 37.535. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

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On a consolidated basis, GE T&D India reported net loss of Rs 37.73 crore in Q3 December 2019 compared with net profit of Rs 53.05 crore in Q3 December 2018. Net sales declined 19.5% to Rs 939.80 crore in Q3 December 2019 over Q3 December 2018.

GE T&D India is engaged in offering switchgear of all types, control panels, power transformers, electrical substation projects and services. The firm operates through domestic and overseas segments.

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First Published: Feb 19 2020 | 1:11 PM IST

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