Credit Analysis & Research (CARE) reaffirmed 'AA-' ratings to Mangalam Cement's long -term bank facilities of Rs 4.05 billion (enhanced from Rs 3.60 billion).

CARE reaffirmed 'AA-/ A1+' ratings to the company's long/ short-term bank facilities of Rs 500 million (enhanced from Rs 400 million).

The ratings continues to draw comfort from rich experience of the promoters, long and established track record of group, established brand though concentrated in northern region only, operational efficiency arising from backward integration and  satisfactory financial risk profile marked by comfortable leverage and liquidity ratios.

The ratings also factor in rising operating cost and subdued finished goods prices, regional player, post implementation risk associated with capital expansion and challenging operating environment for the domestic cement industry.

Ability to improve profitability in wake of rising input cost & subdued cement prices and ability to stabilize the expanded projects and deriving benefit there from remains the key rating sensitivities.

Shares of the company declined Rs 1.05, or 0.98%, to settle at Rs 106.35. The total volume of shares traded was 1,359 at the BSE (Monday).