CRISIL Reaffirms Rating of Coromandel International Banking Facilities Worth Rs11,500 Crore; stocks under pressure
Coromandel International Limited has informed that CRISIL Ratings has reaffirmed its “CRISIL AA+” rating on the company’s long-term banking facilities. He attributed a “positive” outlook to the same.
In addition, it reaffirmed the short-term rating at ‘CRISIL A1+’.
The rating agency also reaffirmed the credit rating of the company’s commercial paper worth Rs2,000 crore at ‘CRISIL A1+’.
Apart from the commercial papers, the total bank facilities examined are worth Rs 9,500 crore.
The ratings continue to reflect Coromandel’s strong market position and operational efficiency in the Indian phosphate fertilizer market.
The company was able to improve its market position to 17.90% in fiscal 2022 from 15.30% previously, thanks to the backward integration facilities put in place over the years, which give it a competitive advantage over imports, said CRISIL in its justification.
Although the industry is under pressure due to rising raw material prices, Coromandel was able to maintain its operational performance, particularly in the second half of fiscal 2022.
In order to protect its operational performance from fluctuating raw material prices, the company has ensured that much of its phosphoric acid requirements are produced in-house over the years. The scale of operations of the company’s agrochemical business has also improved.
At around 3:03 p.m., Coromandel International was trading at Rs 972.90 per coin, down Rs 6.5 or 0.66% from its previous close of Rs 979.40 on BSE.
The certificate opened at Rs981 and touched a high and a low of Rs988.25 and Rs968.10 respectively.