Ind Ra affirms Welspun India long-term rating at 'IND AA/Stable'; Stock gains ~3%

25 Mar 2022 , 01:29 PM

India Ratings and Research (Ind-Ra) has affirmed Welspun India Limited’s (WIL) Long-Term Issuer Rating at ‘IND AA’. The Outlook is Stable. Also, the commercial papers rating has been affirmed at IND A1+.

At around 1:18 PM, Welspun India was trading at Rs98.50 apiece up by Rs2.6 or 2.71% on the BSE.

As per rating rationale report, Ind-Ra continues to take a consolidated view of WIL and its subsidiaries namely Welspun Global Brands Limited (WGBL; ‘IND AA’/Stable) and Welspun Floorings Limited (WFL), to arrive at the ratings. WIL represents the consolidated profile, unless stated otherwise. 

The affirmation reflects WIL’s continued strong operating performance and strong balance sheet, supported by healthy operating cash flows and working capital management in FY22. The agency expects the credit profile to gradually improve with the strengthening of its business profile through the diversification to emerging business and modest de-concentration to the home textile segment with flooring solutions.