ICRA revises outlook of V-Mart Retail’s long-term rating; stock rises

The rating agency has reviewed total bank facilities worth Rs195 crore.

June 29, 2022 3:06 IST | India Infoline News Service
V-Mart Retail Limited informed that the rating agency ICRA Limited has reaffirmed the long-term rating at [ICRA]AA- and short-term rating at [ICRA]A1+ for the captioned line of credit.

The Outlook on the long-term rating has been revised as Positive from Stable.

The rating agency has reviewed total bank facilities worth Rs195 crore. This includes Long-term facilities worth Rs132.43 crore, short-term facilities worth Rs16.57 crore, and unallocated facilities worth Rs46 crore.

The revision in the outlook on V-Mart Retail Limited's long-term rating takes into account ICRA's expectation of healthy growth in turnover and sustained improvement in profitability, driven by continued network expansion, recovery in sales per square foot from the pandemic impact, and profitable ramp-up in operations of the 'Unlimited' stores acquired in FY22.

This, along with calibrated expansions and low reliance on debt, is expected to keep the company's financial risk profile strong, with a conservative capital structure, strong liquidity profile, and robust debt coverage metrics.

At around 3.09 PM, V-Mart Retail was seen at Rs2,503.70 up by Rs18.65 or 0.75% from its previous closing of Rs2,485.05 on the BSE. The scrip touched day's high and low of Rs2,503.70 and Rs2,470.65 respectively.

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