Acuite upgrades credit ratings of Apollo Micro Systems' bank facilities; Stock soars near 3%

10 Aug 2022 , 11:54 AM

Acuité has upgraded its long-term rating to ‘ACUITE BBB’ from ‘ACUITE BBB-’ and short-term rating upgraded to ‘ACUITE A3+ ‘ from ‘ACUITE A3 ‘on the Rs195 crore bank facilities and of Apollo Micro Systems Limited (AMSL). The outlook is ‘Stable’. 

Acuité has assigned its long-term rating of ‘ACUITE BBB’ on the Rs15 crore bank facilities and of Apollo Micro Systems Limited (AMSL). The outlook is ‘Stable’.

According to the rating rationale report, the rating upgrade follows the healthy improvement in revenues growth in FY2022 backed by the continued healthy operating margin.

The rating, however, continues to remain constrained by the working capital-intensive nature of operations due to a high inventory holding and a long receivable cycle of the company.

Acuité has considered the standalone business and financial risk profiles of AMSL to arrive at the rating.

At around 11:55 AM, Apollo Micro Systems was currently trading at Rs144.90 per share up by Rs3.85 or 2.73% from its previous closing of Rs141.05 per share on the BSE.