CRISIL has assigned its bank loan ratings of ‘BBB+/Stable/P2’ to the various bank facilities of Joy Alukkas Traders (India) Private Ltd (JATPL). The ratings reflect JATPL’s established market position and strong brand name, and an above average financial risk profile. These strengths are, however, partly offset by the fragmented nature of, and strong competition in, the jewellery industry, and the exposure of JATPL’s margins to volatility in gold prices.
JATPL is likely to maintain a stable business risk profile over the medium term, on the back of its established market position and healthy growth potential, CRISIL said in a statement.
The outlook may be revised to ‘Positive’ if JATPL’s financial risk profile improves as a result of equity infusion, or of better-than-expected cash accruals. Conversely, any major capital expenditure plans requiring significant debt funding may result in a revision in outlook to ‘Negative’.
JATPL was incorporated in the year 2002. The company has 17 showrooms in India, and a presence in retail jewellery and textiles. Joyalukkas Group is one of the leading retailers for 22-carat jewellery in the world, and has a large presence in the Middle East, with around 50 outlets.