ICRA assigns credit ratings to Premier Explosives' bank facilities worth Rs264.72 crore

27 Apr 2022 , 12:00 PM

Premier Explosives Limited informed that the rating agency ICRA Limited has assigned credit ratings to the company’s long-term and short-term banking facilities.

ICRA has assigned the long-term rating as ‘ICRA BBB+/Stable’. Whilst short-term rating has been confirmed at ‘ICRA A2’.

The total bank facilities reviewed by the rating agency are worth Rs264.72 crore.

The rating reaffirmation takes into account the improved profitability of Premier Explosives Limited (PEL) in 9MFY22, driven by the rising share of defence contracts, a healthy order book that provides revenue visibility, and improved credit profile due to higher cash generation.

The ratings also derive comfort from the healthy order book of Rs401.10 crore at the end of December 2021 with the defence sector and the O&M services segment comprising 73% of the order book.

Premier Explosives is currently trading at Rs392 down by Rs0.6 or 0.15% from its previous closing of Rs392.60 on the BSE. The scrip opened at Rs394.95 and has touched intraday high and low of Rs407.70 and Rs387.60 respectively.