The outlook revision reflects the expectation that the credit risk profile of SEML may improve, driven by superior operating efficiency supported by sector buoyancy and enhanced backward linkages.
The ratings continue to reflect the group's established market position, supported by diversified revenue streams and integrated nature of operations and a healthy financial risk profile.
These strengths are partially offset by exposure to risks related to the cyclical nature of the steel and ferroalloy industry and large investment in associate entities.
CRISIL Ratings has combined the business and financial risk profiles of SEML and SMAL, together referred to as the Sarda group.
At around 11:43 AM, Sarda Energy & Minerals was trading at Rs708.40 apiece up by Rs33.7 or 4.99% on Sensex.