CRISIL has assigned its bank loan ratings of ‘BBB/Positive’ to the various bank facilities of Manipal Press Limited (MPL). The ratings reflect MPL’s established position in the printing industry with wide product profile, healthy operating profitability, and buoyant accruals. These strengths are, however, partly offset by the expected weakening in MPL’s capital structure on account of aggressive capital expenditure plans, and by the company’s exposure to risks relating to geographic concentration in revenues.

Outlook: Positive
CRISIL believes that MPL will maintain its established position in the domestic printing industry with healthy growth in revenues. The rating may be upgraded if the enhanced printing capacities are brought on stream successfully with the generation of higher operating margins and cash accruals resulting in an improvement in the financial risk profile. Conversely, the rating may have a downward bias, if the company undertakes any further debt-funded capital expenditure or acquisition resulting in deterioration of the capital structure.

About MPL
MPL is a print management solutions company, with a variety of products in categories such as commercial, security and digital printing, and business forms. Incorporated in 1941 as M/s Manipal Power Press, a partnership concern, it converted into a limited company in 2000. MPL is part of the Manipal Group, promoted by Mr. Satish Pai and family, having presence in the media and printing business. For 2007-08 (refers to financial year, April 1 to March 31), MPL reported a profit after tax (PAT) of Rs.160 million on operating income of Rs.1.7 billion, as against a PAT of Rs.117 million on operating income of Rs.1.1 billion for 2006-07.