Key Metrics of Precot Limited
About Precot Limited
Sectors
Company details
- Registered office
- Sf No.559/4 D Block 4th Floor, Hanudev Info Park, Nava India Road, Udaiyampalayam, Coimbatore, In-tn, 641028
- Listed
- NSE: PRECOT · ₹582.05
Operational Areas of Precot Limited
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
Sign in to continue See plans & pricingFiling compliance
Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
NoteLatest action: rating withdrawn (CARE, 24 Sep 2021)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 24 Sep 2021 | CARE | Withdrawn | BBB- | A3 | Stable | — | View |
| 25 Jun 2021 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹758 Cr | View |
| 05 May 2021 | CARE | Revised | BBB- | A3 | Stable | ₹379 Cr | View |
| 13 Aug 2020 | CARE | Revised (from BBB-) | BB+ | A4+ | Stable | ₹346 Cr | View |
| 18 Nov 2019 | CARE | Revised (from BBB-) | BBB- | A3 | Stable | ₹779 Cr | View |
| 25 Jul 2019 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹779 Cr | View |
| 21 Sep 2018 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹845 Cr | View |
| 10 Jul 2017 | CARE | Revised | BBB- | A3 | Stable | ₹918 Cr | View |
Credit strengths (CARE, Jun 2021)
+ Established track record of the company
Precot, with operational track record of nearly six decades is among the larger players in the spinning industry in Tamil Nadu. Precot initially started with modest spindle capacity and gradually increased the ca pacity and has an installed capacity of 1,88,640 spindles as on March 31, 2021, spread across six manufacturing units. Long-standing customer relationship with notable presence in export markets Precot’s business is primarily divided into two segments, vi z the spinning division and the
+ Long-standing customer relationship with notable presence in export markets
Precot’s business is primarily divided into two segments, vi z the spinning division and the technical textiles division (TTD). The Spinning division contributed to 78% (PY: 80%) of income in FY21 while TTD contributed to 22% (PY: 16%) of income. Precot has a strong network of dealers/agents spread across India and export markets who facilitate the sale process of the company with key export markets being UK, US, Taiwan, Bangladesh etc. The company has diversified customer base
+ Improved performance in Spinning division
The spinning division witnessed improved profitability during FY21 with PBILDT margin improving from 5.35% in FY20 to 10.72% in FY21. The prices of cotton yarn have increased post lifting of covid lockdown since Q2FY21 following increased demand resulting in improved sales realisation of yarn. 1 CARE Ratings Limited Press Release Robust performance with higher share of value-added products in Technical textile division
+ Comfortable gearing and debt protection metrics
The capital structure of the company stood comfortable with overall gearing of 1.04x as on March 31, 2021 (PY: 1.09x). Due to better operating profit from Spinning division, the debt coverage indicators improved with Total debt/ GCA of 4.98 as on March 31, 2021 as against 19.24 as on March 31, 2020.
Credit challenges
—
Could lead to an upgrade
Ability to scale up operations with greater product diversification and maintain PBILDT margins over 15% on sustained basis. Efficient utilization of working capital limits and Improvement in
Could lead to a downgrade
Any decline in the operating profits due to prolonged impact of Covid pandemic leading to stretched
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term Bank Facilities | Working capital & bank lines | — | ₹181 Cr | — | BBB- (Stable) | Reaffirmed | CARE |
| Long-term Short-term Bank | Working capital & bank lines | — | ₹159 Cr | — | BBB- / A3 (Stable) | Reaffirmed | CARE |
| Short-term Bank Facilities | Working capital & bank lines | — | ₹39.7 Cr | — | A3 | Reaffirmed | CARE |
| Details of facilities i n Annexure-1 | Other | — | ₹379 Cr | — | — | Other | CARE |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | — | Withdrawn |
| CC/Packing Credit | — | Withdrawn |
| Term Loan | — | Withdrawn |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Withdrawal | CARE · 24 Sep 2021 · Withdrawn (reason not stated in report) |
| Next action stable or better (model) | 57% |
| Information on file | 67% · missing: Capex / investment plans, Auditor details, Recent rating review (last 15 months) |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 57% chance the next rating action is stable or better
- Current rating BBB- (investment grade)
- CARE withdrew its ratings on 24 Sep 2021 — usually after the rated bank loans were repaid or moved to another lender
Rated limits by facility
Timeline
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Precot Limited
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Grasim Industries |
Textiles, Cotton & Yarn · Apparel, Textiles & Footwear | grasim.com | 1948 | Ujjain, India |
| Textiles, Cotton & Yarn · Apparel, Textiles & Footwear | arvind.com | — | Ahmedabad, India | |
| Textiles, Cotton & Yarn · Apparel, Textiles & Footwear | welspunliving.com | — | Anjar, India | |
| Formal & Premium Menswear · Apparel, Textiles & Footwear | raymond.in | — | Ratnagiri, India | |
 Alok Industries |
Discovered Companies · Other Industries | alokind.com | 1986 | Silvassa, India |
 Trident |
Part of Mondelez International. | tridentindia.com | — | India |
| RAYMOND LIFESTYLE LIMITED | Discovered Companies · Other Industries | — | — | Aurangabad, Maharashtra, India |
 KPR Mill |
Textiles, Cotton & Yarn · Apparel, Textiles & Footwear | kprmilllimited.com | — | India |
 Page Industries |
Textiles, Cotton & Yarn · Apparel, Textiles & Footwear | pageind.com | 1995 | Bengaluru, India |
| Textiles, Cotton & Yarn · Apparel, Textiles & Footwear | indocount.com | — | Kolhapur, India |
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Principal business activities and related-party transactions are read from MGT-7 and AOC-4 filings.
Filings
No filings on record yet.