The short-term rating of the company has also been reaffirmed at CRISIL A2.
The company stock was in demand during Tuesday's sesssion of trade on Tuesday. At around 10.54 am, GRP Limited was trading at Rs879.00 per piece up Rs59.00 or 7.20% on the BSE. It touched a day's high of Rs889.00 per piece during morning trade on Tuesday.
“The outlook revision reflects recovery in operating performance in second half of fiscal 2021, backed by healthy demand in export market, improved realisations with recent price increase across products and benefit of cost efficiency measures. GRP reported aggregate operating income of Rs159.79cr for second and third quarter of this fiscal, about 90% levels as compared to the same period last year.
The operating profitability improved to 7.4% during this period from 5.2% in fiscal 2020, mainly due to healthy demand, better realizations, and benefit of cost efficiency measures and process automation. GRP has increased prices across product categories in the fourth quarter of this fiscal, which is expected to result in better realizations for fiscal 2022.
The ratings continue to reflect an established market position in the reclaimed rubber industry, and adequate financial risk profile,” The company shared the reasons provided by CRISIL Limited for revision in rating.