ICRA reaffirms rating for Mahindra -; Mahindra's BLR, NCD

12 Aug 2022 , 02:50 PM

Mahindra & Mahindra Limited informed that ICRA Limited reaffirmed the ratings on company’s bank facilities worth Rs2,742.50 crore.

ICRA has reaffirmed the ‘ICRA AAA’ rating on the company’s Non-convertible Debenture Programme, Fund Based Term Loan, and Long-term, Non-fund Based Facilities. All these instruments are assigned a Stable outlook.

The ratings outstanding on the Rs1,000 crore commercial paper (CP) programme stand reaffirmed and withdrawn as there are no obligations outstanding against the rated instrument.

Short-term, Non-fund Based Facilities’ rating reaffirmed at ‘ICRA A1+’.

The ratings reflect Mahindra & Mahindra’s (M&M) strong financial profile, which is characterized by healthy free cash flows from its diverse business across various sectors, robust profitability in its core businesses, and better liquidity with sizeable cash and bank balances and liquid investments.

The ratings take into account the complementary performance of the farm equipment (FES) and automotive (auto) segments, which has provided stability to overall profitability despite cyclical performances in the respective segments in recent years, stated ICRA in its rating rationale.

At around 2.56 PM, Mahindra & Mahindra was trading at Rs1,255 down by 0.83% from its previous closing of Rs1,265.55 on the BSE. The scrip touched intraday high and low of Rs1,268.40 and Rs1,249.05 respectively.