Karvy group's liquidity to stay stretched over medium term: CRISIL

Execution of big government projects and their realisation will remain key monitorables, CRISIL said

Rating agency CRISIL has said Karvy group’s liquidity will remain under pressure over the medium-term because of large working capital requirements. According to CRISIL, the outlook on liquidity is negative. Its net cash accrual may remain healthy at Rs 120 - 140 crore per annum but the sizeable annual repayment obligations of Rs 42-53 crore, along with stretched working capital cycle, will continue to exert pressure on liquidity, the rating agency said.

CRISIL has downgraded its ratings on the bank facilities and non- convertible debentures (NCDs) of Karvy Data Management Services (KDMSL) from “BBB+/negative” to “BB+/Negative”. The downgrade in the