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CARE reaffirms ‘A1+’ rating to HSIL’s Commercial Paper issue

02 Jul 2015 Evaluate

Credit rating agency, CARE has reaffirmed A1+ rating to HSIL’s Commercial Paper issue worth Rs 250 crore. The rating continues to derive strength from the experience of the promoters, established track record of operations of HSIL with a strong market position in building products and glass container segment, wide product portfolio, established brand name and strong marketing and distribution network.

The ratings also derive strength from the continued earnings growth and improvement in margins during FY15. However, these rating strengths are partially offset by exposure to raw material and power costs fluctuation, forex risk and high competition in the industry

HSIL is one of the leading domestic players in container glass and building products segments. Under the second segment, the company manufactures and trades in sanitaryware products, faucets and wellness products. It has five manufacturing facilities in India, of which three are located in Andhra Pradesh, one in Rajasthan and one in Haryana.

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