Acuite assigns credit ratings to Bharat Wire Ropes' bank facilities

22 Apr 2022 , 11:11 AM

Acuité has assigned the long-term rating of ‘ACUITE BBB-’ and Short term rating of ‘ACUITE A3’ to the Rs223.00 crore. bank facilities of Bharat Wire Ropes Limited (BWRL). The outlook is ‘Stable’.

According to the rating rationale, the rating draws comfort from BWRL’s improved operating performance in 9MFY2022 and overall improved financial risk profile, post the implementation of debt restructuring resolution plan in H2FY2021.

The Company generated revenue of Rs276.49 crore in 9MFY2022 as against Rs250.17 crore in FY2021 and Rs257.72 crore in FY2020. The growth in FY2022 is driven by improvement in volumes as well as realizations. The overall gearing stood at 0.63 times in March 31, 2021 as against 17.36 times as on March 31, 2020.

The improvement in capital structure is mainly on account of conversion of debt of Rs 382.66 crore to 38266 Non- cumulative, Non-Voting 0.01% Compulsory Convertible Preference Shares of face value Rs 10/- each fully paid up at an issue price of Rs 1,00,000 under the debt restructuring resolution plan.

At around 11:14 AM, Bharat Wire Ropes was trading at Rs85.35 apiece down by Rs0.15 or 0.18% on the BSE.