CARE Ratings Limited has upgraded its rating and outlook regarding the bank facilities of
Garware Hi-Tech Films Limited. The rating on long-term bank facilities Rs422.08cr (enhanced from Rs369.81cr) has been upgraded to CARE A+ from CARE A while outlook has been revised to Stable from Positive.
The credit rating agency also reaffirmed CARE Al rating on company’s short-term bank facilities Rs198.19cr.
“The revision in the ratings assigned to the bank facilities of Garware Hi-Tech Films Limited (GHFL; erstwhile known as Garware Polyester Limited) factors in the overall business risk profile driven by healthy topline growth and improved PBILDT margins backed by improved product mix and healthy capacity utilisation.
The improvement in the PBILDT margins is also on back of decline in the raw material prices which are crude oil derivatives. The ratings also factors successful commissioning of the new product line, Paint Protection Film in April 2021 which is expected to further support revenue and margin growth going ahead. The rating revision also considers that GHFL will sustain the improvement in its financial risk profile, over the medium term, supported by steady cash generation,” company shared CARE rating rationale in a filing on Wednesday.
Garware Hi-Tech Films Limited was trading at Rs937.75 per piece up Rs9.85 or 1.06% at around 1.49 pm, on the BSE.