CRISIL upgrades 'A/Stable' rating on Ester Industries' bank facilities; Stock up 2%

8 Apr 2022 , 10:58 AM

CRISIL Ratings has upgraded its ratings on the bank facilities of Ester Industries Limited (EIL) to ‘CRISIL A/Stable/CRISIL A1’ from ‘CRISIL A-/Positive/CRISIL A2+’.

According to the rationale report, the upgrade factors in the improved credit risk profile of EIL and sustained operating performance.

The ratings reflect the company’s established market position and long track record in the packaging films business, healthy operating efficiency supported by strong capacity utilisation and diversified product profile. These strengths are partially offset by susceptibility to volatile raw material costs and realisations driven by demand-supply dynamics and large, debt-funded ongoing projects.

To arrive at the ratings, CRISIL Ratings has combined the business and financial risk profiles of EIL and Ester Filmtech Ltd (EFL), together referred to as Ester, given their business and financial linkages and a common management, said rating agency.

At around 11:01 AM, Ester Industries was trading at Rs152.55 apiece up by Rs2.85 or 1.9% on the BSE.