Diamond Sea Food Exports

November 20, 2014

ICRA has upgraded the long-term rating assigned to the Rs. 50.0 crore* long-term, fund-based limits of Mahindra Logistics Limited (‘MLL’ or ‘the company’)† to [ICRA]AA (pronounced ICRA double A) from [ICRA]AA- (pronounced ICRA double A minus). ICRA has reaffirmed the short-term rating assigned to the Rs. 5.0 crore short-term, non-fund based limits of MLL at [ICRA]A1+ (pronounced ICRA A one plus). The outlook on the long-term rating is ‘stable’. The upgrade in long-term rating takes into account the strong financial risk profile of the company as indicated by robust profitability, debt free capital structure and healthy free cash flows generated by the company. The ratings continue to take into consideration the strong parentage of MLL by virtue of it being a subsidiary of M&M (rated [ICRA]AAA (stable)/A1+), its growing SCM business primarily led by increasing business from the Mahindra Group companies, and the leadership position it enjoys in the MPTS business by virtue of its first mover advantage. ICRA notes that the company continues to follow an asset light business model with fleet and warehouses taken on lease, which is positive especially in declining business environments.

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