CRISIL Ratings has reaffirmed its ‘CRISIL A+/Stable and CRISIL A1’ ratings on the bank facilities of
Privi Speciality Chemicals Limited.
According to the Rationale, the ratings continue to reflect PSCL’s strong business risk profile, driven by an established market position in the bulk aroma chemicals industry, long-standing customer relationships, strong relationship with suppliers, and improving profitability and asset utilisation.
The ratings also factor in an above-average financial risk profile because of a comfortable capital structure and adequate debt protection metrics. These strengths are partially offset by exposure to any sudden and sharp fluctuation in foreign exchange (forex) rates, volatility in prices of raw material, particularly crude derivatives, and large working capital requirement.
For arriving at the ratings, CRISIL Ratings has considered the consolidated financials of PSCL and its wholly owned subsidiaries – Privi Biotechnologies Pvt Ltd and Privi Organics, USA, which are strategically important to, and have a significant degree of operational integration with PSCL.
Privi Speciality Chemicals ended Tuesday's trade at Rs1088.50 per piece higher by 2.24% on Sensex.