Ludlow Jute & Specialities Limited has announced the receipt of credit ratings from CRISIL Ratings Limited for its bank facilities worth ₹148.71 crores. The company informed BSE about the rating assignment under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

CRISIL Ratings assigned the company a long-term rating of CRISIL A-/Stable and a short-term rating of CRISIL A2+. The ratings cover various bank facilities across multiple financial institutions, reflecting the agency's assessment of the company's creditworthiness and ability to meet its financial obligations.

Facility-wise Rating Breakdown

The rated bank facilities are distributed across Canara Bank and YES Bank Limited, covering different types of banking arrangements:

The largest component is the cash credit facility from Canara Bank at ₹64.00 crores, followed by the working capital demand loan from YES Bank Limited at ₹31.00 crores.

Rating Validity and Surveillance

CRISIL has indicated that all assigned ratings will be kept under continuous surveillance and review. The rating agency reserves the right to withdraw or revise the ratings based on new information or changing circumstances that may impact the company's credit profile.

Regulatory Compliance

The company has fulfilled its regulatory obligations by promptly informing the stock exchange about the credit rating assignment. This ensures compliance with SEBI's listing regulations that require timely disclosure of material information to investors and market participants.

Ludlow Jute & Specialities , a prominent player in the jute industry, has reported a net loss in its latest financial results. The company's performance highlights a challenging quarter, demonstrating ongoing difficulties in the market environment.

Financial Highlights

• Net Loss: ₹4.49 crore for the quarter ended June 30, compared to a loss of ₹6.48 crore in the same quarter last year
• Revenue: Declined to ₹13.03 crore from ₹74.58 crore in the previous year quarter

Quarterly Performance Analysis

Ludlow Jute & Specialities has faced significant challenges in its financial performance. The company's revenue witnessed a substantial decline year-over-year, decreasing from ₹74.58 crore to ₹13.03 crore. This sharp drop in revenue, coupled with high expenses, has resulted in a continued loss for the company.

The company's total expenses stood at ₹106.82 crore against a total income of ₹13.13 crore, resulting in a loss before tax of ₹93.69 crore. While the net loss has reduced compared to the same quarter last year, the overall financial situation remains concerning.

Key Financial Metrics

Technical Assessment and Accounting Changes

The company has made a significant change in its accounting practices. Based on a technical assessment, Ludlow Jute & Specialities has changed the useful life of certain plant and machinery from 13 years to 30 years. This adjustment has resulted in:

• A decrease in depreciation expense by ₹135.74 lakhs
• An increase in net profit after tax by ₹101.58 lakhs for the quarter

This change in accounting estimate has had a positive impact on the reported financial results, partially offsetting the operational losses.

Corporate Governance

The Board of Directors approved these unaudited results in a meeting held on August 13. The statutory auditors conducted a limited review and expressed no modified opinions on the results, ensuring compliance with regulatory requirements.

Company Outlook

The Q1 performance indicates ongoing challenges for Ludlow Jute & Specialities. The significant decline in revenue and continued losses suggest that the company is facing severe market pressures. Management will likely need to focus on cost-cutting measures and exploring new revenue streams to improve the company's financial health.

Investors and industry observers will be closely monitoring the company's performance in the coming quarters to see if there are signs of recovery or if the current challenges persist.