ICRA revises Shree Pushkar Chemicals' outlook to Positive, reaffirms rating

The rating committee of ICRA has also reaffirmed the short term rating for the LOC at [ICRA] A1.

Apr 01, 2021 11:04 IST India Infoline News Service

ICRA has reaffirmed the Long term rating for the Line of Credit (LOC) at [ICRA] A+ of Shree Pushkar Chemicals & Fertilisers Limited.

The outlook on the long term is positive.

The rating committee of ICRA has also reaffirmed the short term rating for the LOC at [ICRA] A1.

For arriving at the ratings, ICRA has taken a consolidated view of Shree Pushkar Chemicals and Fertilisers Limited (SPCFL) and its wholly owned subsidiaries, Kisan Phosphates Private Limited (KPPL) and Madhya Bharat Phosphate Private Limited (MBPPL).

The revision in outlook to ‘Positive’ is on the account of the anticipated increase in scale of operations and profits of SPCFL in the near to medium term, following the successful acquisition of MBPPL and commissioning of Unit V, which is expected by May 2021.

The ratings reaffirmation continues to take into account the healthy financial profile of SPCFL, characterised by healthy profitability and return indicators as well as low reliance on external borrowings resulting in comfortable gearing levels.

The ratings are, however, constrained by the vulnerability of the company’s profitability to adverse fluctuations in the cost of raw materials as well as intense competitive pressures in the industry.

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