CARE revises ratings of Globus Spirits' bank facilities worth Rs311 crore; stock soars ~4%

5 Jul 2022 , 01:07 PM

Globus Spirits Limited informed that CARE Ratings has revised the credit ratings assigned to the company’s long-term and short-term bank facilities worth Rs311 crore.

The rating agency has revised the rating of long-term bank facilities worth Rs294 crore to ‘CARE A+’ from the existing ‘CARE A’. The outlook has been reaffirmed as ‘Stable’.

It has also revised the rating of Long Term/Short Term Bank Facilities worth Rs17 crore from ‘CARE A; Stable/CARE A1’ to ‘CARE A+; Stable/CARE A1+’.

The ratings assigned to Globus Spirits’ bank facilities have been revised to reflect the company’s improved financial performance during FY22 (April 1 to March 31) while maintaining healthy profit margins, as well as an improvement in the capital structure and debt protection metrics.

The rating action also considers the increase in revenue potential due to an increase in installed capacity following the successful commissioning of a project in West Bengal in FY22.

At around 1.10 PM, Globus Spirits was trading at Rs976.15 up by Rs36.7 or 3.91% from its previous closing of Rs939.45 on the BSE. The scrip touched intraday high and low of Rs986.75 and Rs941.20 respectively.