At 9:53 am, the stock was trading 4.63 per cent lower at Rs 24.70 apiece, as against a 0.21 per cent rise in the benchmark S&P BSE Sensex. About 3.3 million shares have changed hands on the NSE and BSE till the time of writing of this report.
On December 11, the stock had hit a lifetime low of Rs 20.60 per share after rating agency CRISIL downgraded its long-term and short-term ratings to the company's bank loan facilities to CRISIL D. The instruments with this rating are in default or are expected to be in default soon, as per the rating agency.
As per the rating rationale, the downgrade in the rating factored in the instances of development of Letter of Credits (LC) and overutilization in working capital limits for more than 30 days. The same was reflective of the fact that the liquidity profile of the group has deteriorated in past few months on account of cash flow mismatches. READ HERE
The company, however, clarified that Indian jewellery demand during Q2 at 101.6 tonnes was almost a third lower year-on-year due to weaker consumer sentiments and there was a decline of nearly 51 per cent in Indian bullion imports on quarter-on-quarter basis.
Previously, in November, CARE Ratings had downgraded the compnay's rating for fixed deposits from “BB+” to “B” on stressed liquidity position and deterioration in the financial flexibility of the company.