ICRA reaffirms ‘BB+’ rating to Kilburn Engineering’s bank facilities

Credit rating agency, ICRA has reaffirmed the long term rating outstanding on the Rs. 30 crore fund based limits and Rs 100 crore non-fund based limits of Kilburn Engineering at ‘BB+’. The outlook for the long term rating is stable. The reaffirmation of the rating takes into account the turnaround in the company’s operations in the past fiscal, with the company reporting a net profit of Rs 1.06 crore in 9M FY 2014 driven by the increase in share of exports, which were inherently more profitable, coupled with the favorable movement in exchange rates. The company undertakes the design and manufacturing of drying systems for various industries such as carbon black, chemicals, petrochemicals, fertilizers, steel, and food processing. The company has two main lines of products viz. process equipment dryers and food dryers with process equipment dryers accounting for 70% of the company’s turnover.