India Ratings & Research Pvt. Ltd (Ind-Ra) has upgraded the ratings of various facilities of
JK Tyre & Industries Limited.
The company stock was bullish during Monday's trade amid bearish markets. It was trading at Rs116.60 per piece up by Rs4.4 or 3.92% from its previous closing of Rs112.20 per piece on the BSE, at around 12.58 pm.
The rating on fund-based and non-fund based limits has been upgraded to IND A/Stable/Ind A1 from IND A-/Negative/IND A2+. Long-term Loans ratings have been revised to IND A / Stable from IND A-/Negative. The rating on Term Deposits has been also upgraded to IND tA+ / Stable from IND tA/Negative
“The rating upgrade reflects the company's better-than-expected operating performance on the back of strong replacement demand and surge in demand from original equipment manufacturers (OEMs). Significant improvement in profits and working capital efficiencies have accelerated debt reduction in FY21,” company shared Ind-Ra’s rationale of rating on Friday.
lnd-Ra's expects a healthy revenue growth in FY22 as supported by strong demand from OEM and replacement markets. Moreover, a leaner cost structure, better operating efficiencies and focus on better working capital management shall lead to robust profitability in FY22.