CRISIL reaffirms 'A1+' rating on Prince Pipes and Fittings' commercial paper worth Rs50 crore

11 May 2022 , 11:31 AM

CRISIL Ratings has upgraded its ratings on the Rs668 crore bank facilities and Rs50 crore commercial paper program of Prince Pipes and Fittings Limited (PPFL) to ‘CRISIL A+/Stable/CRISIL A1+’ from ‘CRISIL A/Positive/CRISIL A1’.

The upgrade reflects the sustained improvement in the company’s business risk profile driven by the healthy revenue growth and operating efficiencies. 

The ratings reflect the strong business risk profile marked by its market position in domestic plastic pipe industry supported by diverse product portfolio, geographical presence, and end-user industry, extensive experience of promoters, and a robust financial risk profile.

These rating strengths are partially offset by presence in a highly competitive industry, moderate capacity utilization, susceptibility to volatility in raw material prices, and moderate working capital requirements.

Prince Pipes & Fittings was trading at Rs636.25 apiece down by Rs11.9 or 1.84% on the BSE, at around 11:33 AM.