LT Meals rose 2.65 per cent to Rs 59.90 after the credit score rating scores firm upgraded the credit score rating scores on the corporate’s financial institution mortgage services worth Rs 1187.5 crore.
CRISIL Rankings has upgraded its rating on the financial institution services of LT Meals to ‘CRISIL A/Steady/CRISIL A1’ from ‘CRISIL A-/Optimistic/CRISIL A2+’. The short-term rating on the corporate’s financial institution services have moreover been upgraded from ‘CRISIL A2+’ to ‘CRISIL A1’.
The credit score rating scores firm talked about that the improve shows regular enchancment in group’s enterprise and financial hazard profiles.
Group achieved working earnings of Rs 3499 crore in first 9 months of fiscal 2021 as compared with Rs 2948 crore in first 9 months of fiscal 2020.
Working margin was moreover bigger at 12.4 per cent for the first 9 months of fiscal 2021 as compared with 11.5 per cent for the corresponding interval of the sooner fiscal. Going ahead, CRISIL Rankings expects enterprise hazard profile to proceed to boost over the medium time interval.
The financial hazard profile has moreover improved as is mirrored in debt-to-EBIDTA of two.2 cases as on December 31, 2021 which is successfully beneath CRISIL Rankings’ expectations of sustaining the aforementioned ratio of three cases over the medium time interval. CRISIL Rankings expects the ratio to remain beneath 2.5 cases over the medium time interval no matter improve in revenues.
The scores proceed to reflect the LT group’s sturdy market place throughout the basmati rice enterprise, resulting in product sales growth and safe profitability. The scores moreover concern throughout the group’s diversified geographical attain by way of sturdy producers, established promoting group and enhancing financial hazard profile.
These strengths are partially offset by large working capital requirement, susceptibility to unstable raw supplies prices and changes in commerce insurance coverage insurance policies of key importing nations.
LT Meals is a branded specialty meals firm. The corporate is engaged in milling, processing and promoting of branded and non-branded basmati rice, and manufacturing of rice meals merchandise throughout the house and overseas market. Its geographical segments embrace India, North America and Remainder of the world.
The corporate’s consolidated net income elevated by 46.1 per cent to Rs 66.33 crore on a 7.9 per cent rise in net product sales to Rs 1074.98 crore in Q3 FY21 over Q3 FY20.