Credit rating agency, CRISIL has upgraded its ratings on the bank facilities of Smruthi Organics to ‘BBB/Stable/ A3+’ from ‘BBB-/Stable/CRISIL A3’.
The upgrade reflects CRISIL’s belief that Smruthi Organics will sustain the improvement in its financial risk profile over the medium term. The company reported a strong compound annual growth rate of 49% in its revenues over the past two years, while maintaining its moderate operating margin, supported by its strong clientele.
The ratings reflect the company’s established market position, supported by good client relations, and moderate financial risk profile marked by moderate gearing and debt protection metrics. These rating strengths are partially offset by the company’s limited product diversity, the intense market competition it faces, and its aggressively debt-funded capex plans.
Smruthi Organics commenced operations by manufacturing active pharmaceutical ingredients (APIs). The company manufactures bulk drugs, drug intermediates, and APIs. The key APIs manufactured by the company are norfloxacin, metformin, zidovudin, and amlodipine.
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|---|---|
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| Dr. Reddys Lab | 1220.75 |
| Cipla | 1232.90 |
| Zydus Lifesciences | 928.85 |
| Lupin | 2311.75 |
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