Zuari Agro hits 52-week low as ICRA downgrade credit ratings

According to ICRA, the company's cash generation will remain weak in the near term given the significant agri-stress prevalent in the operating territory of the company

Zuari Agro Chemicals (ZACL) shares hit 52-week low of Rs 142, down 7 per cent, in intra-day trade on the BSE, after the fertiliser company said rating agency ICRA downgraded credit ratings of the company's various instruments.

The rating revision factors in the devolvement of several Letters of Credit (LCs) by the company in the month of April and May 2019 and overutilisation of fund based facilities owing to significant delays in the subsidy receipt from Government of India (GoI) and weak liquidity position of the company driven by significant cash loss in April-December period (9MFY2019), ICRA said.