CARE Ratings Limited has also re-affirmed the credit rating of [CARE A 1+] assigned to the Short Term Bank facilities of the Company.
The revision in outlook factors in the lower than expected increase in the revenue of the company in FY20 led by adverse effects of the Covid-19 pandemic.
The reaffirmation of the ratings assigned to the bank facilities of Seshasayee Paper and Boards Limited (SPBL) continue to factor in the established track record of the company along with extensive experience of the promoters in the paper industry as well as a strong and well-qualified technical team, well-established distribution network, its moderate operating performance backed by operating efficiencies as well as synergies derived from integrated manufacturing operations.
The ratings also derive strength from the healthy financial risk profile marked by robust capital structure along with comfortable debt coverage indicators in FY20 and 9MFY21.
Seshasayee Paper & Boards Ltd was trading at Rs165 apiece up by Rs3.5 or 2.17% from its previous closing of Rs161.50 apiece on the BSE, at around 10:36 AM.