Ind Ra upgrades Laxmi Organic Industries long term issuer rating to 'AA-/Stable'

4 Jan 2022 , 09:55 AM

India Ratings and Research (Ind-Ra) has upgraded Laxmi Organic Industries Limited’s (LOIL) Long-Term Issuer Rating to ‘IND AA-’ from ‘IND A+’. The Outlook is Stable. Further, Ind Ra affirmed Commercial Paper (CP) at ‘IND A1+’.

As per rationale report, the upgrade reflects a substantial improvement in LOIL’s consolidated credit profile post completion of an initial public offering (IPO), healthy profitability over FY21-1HFY22 backed by steady growth in acetyls and specialty intermediates segments and an expected improvement in LOIL’s business profile over the medium term.

The agency continues to take a consolidated view of LOIL and its wholly-owned subsidiaries to arrive at the ratings, in view of the strong operational and strategic interlinkages.

At around 9:54 AM, Laxmi Organic Industries was trading at Rs434.15 per piece down by 1.44% on Sensex.