ICRA revises long-term rating of Tata Metaliks' bank facilities worth Rs230 crore; stock zooms ~2%

13 Jul 2022 , 11:54 AM

Tata Metaliks Limited informed that the rating agency, ICRA Limited, revised the credit rating assigned to long-term fund-based limits of the company.

ICRA has revised the long-term rating to ‘ICRA AA’ from the existing ‘ICRA AA-’. The amount of fund-based instruments has been revised to Rs230 crore from the existing Rs318 crore. Further, the rating continues to be under rating Watch with Developing Implications.

The rating of Non-fund-based facilities worth Rs428 crore has been reaffirmed at ‘ICRA A1+’ and it continues to be under rating Watch with Developing Implications.

The ratings take into account the anticipated commissioning of enhanced ductile iron pipe (DIP) capacities in the current fiscal year, which will result in lower external pig iron sales and, as a result, higher DIP volumes, enriching the product mix toward higher value-added DIP.

ICRA has noted a significant increase in tender prices for recent DIP contracts to be executed over the next 12 months.

Given that the existing order book still contains some legacy contracts booked at less remunerative prices, the full benefits of this upward revision will be realized gradually over the course of FY23.

At around 11.52 AM, Tata Metaliks was trading at Rs702.35 up by 2.12% from its previous closing of Rs687.75 on the BSE. The scrip opened at Rs697.30 and hit intraday high and low of Rs705 and Rs694.80 respectively.