The Ruby Mills Limited

LT-Cash - - - 23.00 CARE BB-; Stable Credit Fund-based - LT-Term - - ????? 48.00 CARE BB-; Stable Loan Non-fund-based - ST- - - - 12.80 CARE A4 BG/LC 3 CARE Ratings Limited Press Release Annexure-2: Rating History of last three years Sr.

The Indian textiles industry, currently estimated at around US$ 120 billion, is expected to reach US$ 230 billion by 2020. The Indian Textile Industry contributes approximately 4 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to the overall Index of Industrial Production (IIP). The total area under cultivation of cotton in India is expected to increase by 7 per cent to 11.3 million hectares in 2017-18, on account of

TRML’s income in Real Estate division is from lease rental (leasing of office premise), sale of office premises and transfer of development rights as per the development agreement with MEPL. TRML’s income from development rights declined to Rs. 27.15 crore in FY17 from Rs. 31.76 crore in FY16, TRML has not sold/Leased any area since December, 2016. Concerns due to delay in receipt of Occupancy Certificate TRML has experienced cost overrun in the project on account of delay in getting occupation

TRML has experienced cost overrun in the project on account of delay in getting occupation certificate. The proposal to get the full occupancy certificate is pending with BMC. The company has received the occupancy th certificate upto 20 floor, TRML has applied for the occupancy certificate is awaiting for the same. The project cost incurred has increased from Rs.1,085 crore as on March 31, 2016 to Rs.1135.06 cr as on September 30,

Financial, real estate, and professional services saw growth of 9.1%, a drop from 10.5% from the previous quarter ending June 2016. Software industry body National Association of Software and Services Companies (NASSCOM) expects the country’s IT industry to grow at 12.0-14.0% during 2016-17 despite concerns regarding the future of outsourcing from the United States (US). Also, there are quite a few IT Parks and commercial properties in the nearby vicinity viz Kohinoor Mills, One Indiabulls Centr

Moderate overall gearing and debt servicing parameters Overall gearing of the company improved to 1.01x as on March 31, 2017 as against 1.15x as on March 31, 2017 primarily on account of reduction in total debts as the company has prepaid the LRD Facility of Allahabad Bank and Indus Ind Bank and availed the fresh LRD facility from HDFC bank of Rs. 230 crore which lead to reduction in overall debt. Stability in profitability in the Textile Division

The textile division contributed about 87% of the total revenues of TRML in FY17. The revenues from this division reduced marginally from Rs.180.80 cr in FY16 to Rs.175.00 cr in FY17 on account of lower demands in market. The demand was hampered on account of demonization and implementation of GST. TRML’s PBILDT dipped to Rs. 71.24 crore in FY17 compared to Rs. 81.56 crore in FY16. Consequently PBILDT margins reduced