CRISIL revises ratings on Indo National's credit facilities; Stock jumps 3%

3 Feb 2022 , 01:45 PM

CRISIL Ratings has reaffirmed it rating on the long term bank facilities of Indo-National Limited (INL) at ‘CRISIL A/Stable’ and assigned its ‘CRISIL A1’  rating to the short term bank facility.

As per rationale, the ratings continue to reflect INL’s established market position and brand in the domestic dry cell batteries industry, as well as its vast distribution network, diverse revenue profile through Kineco (composites for defence, railways and aerospace), and the company’s adequate and improving financial risk profile. T

hese strengths are partially offset by slowish growth in the core domestic dry cell batteries business, supplier concentration risks, and susceptibility of operating profitability to volatile input prices and intense competition.

For arriving at the rating, CRISIL Ratings has consolidated the business and financial risk profile of INL and its subsidiary, Kineco. CRISIL Ratings has also amortized the goodwill on acquisition of Kineco over a period of five years ending 2021.

Indo National was trading at Rs505.80 apiece up by Rs15.45 or 3.15% on Sensex, at around 1:46 PM.