Credit Analysis & Research (CARE) assigned 'A' ratings to Videocon Industries' long-term non-fund based bank of Rs 151.05 billion. CARE reaffirmed 'A' ratings to the company's long-term fund-based bank/FIs of Rs 212.22 billion.

CARE reaffirmed 'A/ A1' ratings to the company's long/short-term non-fund based bank of Rs 11.90 billion. CARE reaffirmed 'A1' ratings to the company's short-term fund-based bank of Rs 20 billion.

The rating assigned to the bank facilities of Videocon Industries (VIL) reflects the company's significant presence in upstream Oil & Gas (O&G) business; VIL holds participating interests in oil and gas fields in Brazil, Indonesia, India and till recently Mozambique. The ratings also factor in VIL's leading market position in domestic Consumer Electronics & Home Appliances (CE&HA) segment. The rating positives also include successful monetizing of gas assets, which has helped the company bolster its liquidity position and so also the capital structure. 

The rating assigned to the bank facilities of Videocon Industries (VIL) reflects the company's significant presence in upstream Oil & Gas (O&G) business; VIL holds participating interests in oil and gas fields in Brazil, Indonesia, India and till recently Mozambique. The ratings also factor in VIL's leading market position in domestic Consumer Electronics & Home Appliances (CE&HA) segment. The rating positives also include successful monetizing of gas assets, which has helped the company bolster its liquidity position and so also the capital structure. 

Videocon group's Direct to Home (DTH) foray through Bharat Business Channel has also turned EBIDTA (Earnings Before Interest Depreciation Tax Amortization) positive, and is a leading player in the DTH market in India with a customer base in excess of 10 million. Going forward, in case of necessity, free cash generated from DTH business too shall be available to support VIL's financial commitments. 

The above rating strengths are tempered by exposure to project execution risk and large investments necessary for commercializing of O&G discoveries; so also stiff competition in the CE&HA business. Its leveraged capital structure is also a rating weakness.

Shares of the company gained Rs 1.45, or 0.82%, to settle at Rs 178.30. The total volume of shares traded was 127,794 at the BSE (Tuesday).