CRISIL upgrades rating of Safari Industries' bank facilities worth Rs150 crore; stock slips ~1%

9 Sep 2022 , 02:57 PM

Safari Industries Limited informed that the rating agency CRISIL Ratings has upgraded the ratings assigned to the bank facilities of the company.

CRISIL has upgraded long-term ratings to ‘CRISIL A’ from the existing ‘CRISIL A-’. While it has revised the outlook to ‘Stable’ from ‘Positive’.
Company’s short-term rating has been upgraded to ‘CRISIL A1’ from the existing ‘CRISIL A2+’.

The bank facilities include fund-based facilities from Axis Bank, Citi Bank, HDFC Bank, IndusInd Bank, and non-fund-based limits from Axis Bank.

The upgrade reflects the group’s improved commercial risk profile while retaining its excellent financial risk profile. In fiscal 2022, the group reported revenue of roughly Rs706 crore.

The medium-term growth rate is likely to be sustained, particularly in fiscal 2023, owing to increased capacity in the hard luggage vertical, development plans in tier 2 and tier 3 cities across India, a diverse selection of products, and an expected rebound in travel and tourism. In addition, there has been a consistent movement in customer preference for branded products, said CRISIL in its rationale.

Safari Industries was trading at Rs1,513.25 per piece, down by 1.2% from its previous closing of Rs1,531.60 on the BSE. The scrip touched intraday high and low of Rs1,542 and Rs1,436 respectively.

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