India Ratings and Research (Ind-Ra) has downgraded Ballarpur Industries's (BILT) NCDs to 'D' from 'C'.

The downgrade reflects the inability of the company to service its debt obligations in a timely manner owing to its stressed liquidity position due to BILT's poor operational cash flows as well as weak credit metrics as reflected in EBITDA losses at the consolidated level in 9MFY17. The company has already defaulted on timely servicing of its bank loans and CPs. 
 
BILT along with its subsidiary, BILT Graphic Paper Products (BGPPL; 'D') continues to face delays in the necessary deleveraging, as efforts to monetise its assets have not fructified within planned timelines.
 
The company has also been unable to refinance its debt or elongate the maturity profile of its near-term debt obligations fully.
 
Cash flows inadequacy has reduced BILT's and BGPPL's ability to fund debt obligations through internal accruals, creating an immediate need for refinancing. In 9MFY17, BILT reported consolidated revenue of Rs 16.9 billion (down 44.8% yoy) and consolidated EBITDA losses of Rs 744 million (Rs 5.6 billion) with  net loss of Rs 9,037 million (negative Rs 781 million). BILT reported EBIT margin of negative 12.1% in 9MFY17 in the key paper segment (9MFY16: 16.1%).

Shares of the company gained Rs 0.15, or 0.75%, to trade at Rs 20.05. The total volume of shares traded was 417,380 at the BSE (11.12 a.m., Wednesday).