Credit rating agency, Credit Analysis & Research (CARE) has revised rating of HSIL’s long term bank facilities worth Rs 827.13 crore to ‘AA-’ from ‘A+’. The rating agency has reaffirmed ‘A1+’ rating to the company’s short-term bank facilities worth Rs 150 crore.
The rating agency has also reaffirmed ‘A1+’ rating to the company’s commercial paper (CP) issue worth Rs 250 crore. The revision in ratings takes into account financial flexibility emanating post QIP-issue of Rs 250 crore in March 2015 as reflected in the improvement in overall gearing (reduced to 0.69x as on March 31, 2015; PY: 1.44x) and profitability (PBILDT margin of 17.78% and PAT margin of 5.65% during FY15; PY: PBILDT margin: 14.89% and PAT margin: 3.24%).
Further, the ratings continue to derive strength from the experience of the promoters, established track record of operations of HSIL (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.
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.