Financial Outlook
| Company |
Jaina Marketing & Associates |
Jaina Mobile India (P) Ltd. |
| Rating Date |
February 2010 |
October 2010 |
| Rating |
LBBB and A3+ |
LBBB and A2 |
| Special Comments |
The ratings reflect the established presence of the company in the business of import, export and distribution of mobile handsets in India with a strong nation‐wide supply chain network and the established position of the key promoter in the field of pan‐India distribution of mobile handsets.
Substantial investments made by the company in promoting the Karbonn brand and strong distribution network with expertise in supply chain management.
The ratings also take into consideration the attractive growth opportunities in the Circle A & B cities given their relatively low penetration levels which predominantly forms the main target market for Karbonn mobiles and also the healthy gross margins earned from Karbonn mobiles which have been sufficient to fund the substantial expenses incurred to promote Karbonn mobiles (selling expenses as a percentage of sales were 6.1% in FY10 compared to 2.7% in FY09) |
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