Hyderabad Industries Ltd

• Non-convertible debentures - Rs. 13.05 crore Rating : BBB- (downgraded from BBB+)
• Non-convertible debentures - Rs. 15 crore Rating : BBB- (downgraded from BBB+)

Crisil has downgraded its ratings for Hyderabad Industries Ltd's non-convertible debenture issues from 'BBB+'  to 'BBB-'.

The revision in rating reflects the continuing downturn in the performance of the Hyderabad Industries' heavy engineering division and pressure on margins of its AC sheets division, which has impacted the financial performance of the company. The rating factors in Hyderabad Industries' investments in group companies as well as projects (for new products) where concomitant returns are not expected in the short term. To some extent, these risks are mitigated by the company's leadership in the AC sheets market.

Hyderabad Industries is engaged in the manufacture of asbestos sheets, earth moving machinery, and steel structures. For the half year ended 30 September 1999 the company registered net sales of Rs.143.2 crore, and profit after tax of Rs.1.45 crore.