Fitch: Bhartiya notes A-(ind)

Fitch Ratings said it affirmed Bhartiya International Ltd.'s national long-term rating at A-(ind).

The agency also said it assigned an expected A-(ind) rating to its proposed Rs. 500 million non-convertible debentures.

The outlook is stable.

The ratings reflect the company's integrated operations, sound operational track record of more than two decades in the niche leather garmenting and comfortable capital structure supported by regular equity injections from founding shareholders, Fitch said.

The company mitigates inventory obsolescence by continuously offering new products based on its understanding of the end-market and its tie-ups with Italian designers, the agency said.

Key risks include its increasing working capital intensity as its inventory days increased to 181 days in 2011 from 111 days in 2010, Fitch said.

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