CRISIL upgrades DP Wires' short-term credit rating to ‘CRISIL A2+'; stock zooms ~1.5%

9 Jun 2022 , 01:48 PM

DP Wires Limited informed that the rating agency CRISIL Limited has reviewed the total bank facilities worth Rs45 crore.

CRISIL Ratings has upgraded its ratings on the bank loan facilities of DP Wires to ‘CRISIL A-/Stable’ from ‘CRISIL BBB+/Stable’.

Short-term ratings of the company have been upgraded to ‘CRISIL A2+’ from ‘CRISIL A2’.

The upgrade indicates improvement in the company’s business risk profile and financial risk profile driven by the improvement in revenue on the back of growth in volumes as well as better realization supported by elevated steel prices.

The ratings exhibit the extensive experience of the promoters in the steel industry resulting in strong relations with customers and suppliers, and established market position and a diversified end-user industry & customer base, a moderate working capital cycle, and a healthy financial risk profile, stated CRISIL in its rationale.

At around 1.33 PM, DP Wires’ counter was trading 1.22% higher at Rs311.90 against its previous close of Rs308.15 on NSE. The scrip touched intraday high and low of Rs314.80 and Rs305 respectively.