CRISIL reaffirms Munjal Showa's credit ratings

The total bank facilities worth Rs144.25cr has been reaffirmed by CRISIL.

Mar 03, 2021 11:03 IST India Infoline News Service

CRISIL Ratings has reaffirmed its 'CRISIL AA/Negative/CRISIL A1+' ratings on the bank facilities and commercial paper programme of Munjal Showa Limited (MSL).

The total bank facilities worth Rs144.25cr has been reaffirmed by CRISIL.

For the purpose of issuance of the commercial paper programme, the rating is valid for 30 calendar days from the date of the issuance.

Rationale report informs MSL's revenue fell by 26% in the 9 months of fiscal 2021 compared with the corresponding period of the previous fiscal. Operating profitability too declined to 2.2% from 4.3% during this period due to higher overheads following lower volumes. Performance is likely to improve in fiscal 2022, in line with the expected growth in the automobile segment.

The ratings continue to reflect MSL’s strong business linkages with customers and robust financial risk profile, supported by zero debt and substantial cash accrual. 

On Wednesday, at around 11:15 AM on Sensex, Munjal Showa was trading at Rs160.05 per piece up by Rs3.65 or 2.33% from its previous closing of Rs156.40 per piece.

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