CRISIL revises 'A-/Positive' ratings on Sree Rayalaseema Hi-Strength Hypo's bank facilities; Stock gains 2%

The short term rating has been upgraded to 'CRISIL A1' from 'CRISIL A2+'.

Apr 13, 2021 12:04 IST India Infoline News Service

CRISIL has revised its outlook on the long term bank facilities of Sree Rayalaseema Hi-Strength Hypo Limited (SRHHL) to 'Positive' from 'Stable' while reaffirming the rating at 'CRISIL A-'.

The short term rating has been upgraded to 'CRISIL A1' from 'CRISIL A2+'.

The rating action reflects strong operating performance in fiscal 2020 supported by continued healthy performance of both Chemicals and Power business segments resulting in sustenance of operating margin at 14% in fiscal 2020.

CRISIL ratings on the bank facilities of SRHHL continues to reflect a strong financial risk profile, with adequate liquidity due to heathy net cash accrual against modest repayment obligation and minimally utilised bank limit.

The ratings also factor in an established track record in the inorganic chemicals industry, an established relationship with customers. 

CRISIL believes SRHHL's business and financial risk profile is expected to improve further on account of healthy demand for the products.

At around 12:38 PM, Sree Rayalaseema Hi-Strength Hypo was trading at Rs249.80 apiece up by Rs5.55 or 2.27% on Sensex.

Related Story

Open Free Demat Account (Rs699)