CRISIL revises Pokarna's short-term credit rating to ‘A2'; stock tumbles over 2%

16 Jun 2022 , 12:24 PM

Pokarna Limited has informed that the rating agency CRISIL has upgraded the rating assigned to the company’s bank facilities.

The rating agency has upgraded the rating assigned to Pokarna’s total bank facilities worth Rs60 crore. It has revised the long-term issuer rating to ‘BBB+’ from the existing ‘BBB’ and has given a stable outlook on the same.

Company’s short-term rating has been revised to ‘A2’ from the existing ‘A3+’.

Total long-term bank facilities include Cash credit, a foreign currency term loan from Union Bank of India, and a Proposed Long Term Bank Loan Facility.

Short-term facilities include export packaging credit, Foreign Documentary Bills Purchase, and letters of Credit.

The rating action reflects better-than-expected business performance supported by a faster than expected ramp up in sales from the new quartz surfaces unit resulting in an increase in revenue to around Rs650 crore in fiscal 2022 from Rs295 crore in the previous fiscal.

Though the operating margin reduced marginally, on account of one-time expenses & higher input costs, it remained healthy at 26.8% in fiscal 2022, stated CRISIL in its rating rationale.

At around 12.29 PM, Pokarna was trading at Rs429.20 down by Rs11.2 or 2.54% from its previous closing of Rs440.40 on the BSE. The scrip touched intraday high and low of Rs454.90 and Rs427.45 respectively.