CARE reaffirms rating on Surya Roshni's facilities worth Rs2,214 crore; stock gains ~1%

30 Sep 2022 , 11:45 AM

Surya Roshni Limited informed that CARE Ratings Limited has reaffirmed the ratings assigned on the company’s total facilities worth Rs2,214.32 crore.

CARE has reaffirmed the ‘CARE AA-’ rating on long-term bank facilities worth Rs1,000 crore. It has reaffirmed a Stable outlook on such facilities.

Company’s short-term rating on instruments worth Rs1,014.32 crore has been reaffirmed at ‘CARE A1+’.

The company further stated that the rating agency has reaffirmed the ‘CARE A1+’ rating on the commercial paper programme worth Rs200 crore.

The reaffirmation of the ratings assigned to the bank facilities and debt instruments contributes to the company’s improvement in operational performance in FY22 and QI FY23. This is supported by favorable changes in the industry and business dynamics in the lighting division and higher contribution of value-added products in the Steel Pipes and Strips Division.

These favourable changes result in better profitability and accruals and improvement in debt metrics and liquidity position, consistent reaffirmation of the ratings assigned to the bank facilities and debt instrument.

The ratings continue to benefit from the promoters’ and management’s significant knowledge, as well as the company’s long track record of operations in both the lighting and steel pipe industries, with a diverse product portfolio, said CARE in its rating rationale.

At around 11.54 AM, Surya Roshni was trading at Rs455.20 up by 0.15% from its previous closing of Rs454.50 on the BSE. The scrip opened at Rs450.05 and touched intraday high and low of Rs465 and Rs450.05 respectively.

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