Brickwork upgrades credit ratings for bank loan facilities of Vimta Labs

8 Feb 2022 , 01:31 PM

Vimta Labs Ltd has informed that Brickwork ratings has upgraded the credit ratings of the bank facilities of the company.

The long-term ratings has been upgraded to BWR A with Stable outlook while short-term ratings has been upgraded to BWR A1.

The upgradation of ratings of Vimta Labs Limited (VLL or the company) reflects the sustained improvement and better than envisaged year-to-date business and financial profile after a stable performance in FY21. 

The rating upgrade also factors in the Positive industry/business outlook of the diagnostics/analytical business, especially in view of the current pandemic scenario and the recent addition of 3 new laboratories to its network expanding the count to 21 laboratories across the country, aiming to tap the growing demand.

Brickwork Ratings (BWR)  believes VLL’s business risk profile will be maintained over the medium term. The outlook may be revised to Positive if a sustained increase in the scale of operations, timely realisation of receivables, and higher-than-envisaged improvement in profitability result in an improved financial risk profile, said the rating agency.

At around 1:32 PM, Vimta Labs was trading at Rs399.50 apiece up by Rs2 or 0.5% on Sensex.