ICRA assigns Kesoram Industries' long-term issuer rating at 'BBB-/Stable'

11 Feb 2022 , 04:10 PM

Kesoram Industries Ltd has informed that the Rating Committee of ICRA, has assigned a long-term rating of [ICRA]BBB- to Kesoram Industries Limited. The Outlook on the long-term rating is “Stable”.

According to the rationale report, the assigned rating factors in the improving operating performance of Kesoram Industries Limited (KIL) as reflected in the increase in OPBIDTA/MT in FY2021 and H1 FY2022, which is expected to continue going forward.

The rating also factors in KIL’s track record of operations in the cement manufacturing business with an established presence in Maharashtra, Telangana and Karnataka. The assigned rating, however, is constrained by the company’s modest financial risk profile and exposure to refinancing risk.

The Stable outlook on the long-term rating reflects ICRA’s opinion that KIL will continue to benefit from its established presence in the western and southern region and generate healthy cash accruals from the business which will support its refinancing ability.

Kesoram Industries ended at Rs61.50 apiece down by Rs2.2 or 3.45% on Sensex.