CARE updates on ratings of The India Cements Ltd

Long Term Bank Facilities - Rs. 3,194.37 crore - CARE A; Stable (Single A; Outlook: Stable) - Reaffirmed; Outlook revised from Positive

Short Term Bank Facilities - Rs. 750.00 crore - CARE Al (A One) - Reaffirmed

The outlook for ICL has been revised from positive to stable as the expected growth in volumes and profitability has not been achieved in 9MFY22 (refers to period from April 01 to Dec 31) and the same will be likely lower than expected levels for the full fiscal year 2022. The sales realization of cement has though sustained in 9MFY22, but the profitability (PBILDT per tonne) has been impacted primarily on account of the cost side pressures and lower sales volume as against envisaged leading to moderation in its debt protection measures. The ability of the company to improve its profitability levels and bring down its debt levels going forward shall remain key rating monitorable.

The ratings continue to factor in the market position of The India Cements Limited (ICL) in the southern markets as one of the largest players with established presence, its strong brand image in all the five southern states, integrated nature of operations with presence of captive power plants and revenue contribution from non-southern states resulting in geographical diversification. The ratings are, however, tempered by the susceptibility of the revenues and profitability to the demand-supply dynamics of the cement market, ICL's moderate leverage levels, relatively low profit margins, exposure to group entities and cyclical nature of cement industry.

Shares of The India Cements Limited was last trading in BSE at Rs. 197.05 as compared to the previous close of Rs. 188.10. The total number of shares traded during the day was 249148 in over 3417 trades.

The stock hit an intraday high of Rs. 202.85 and intraday low of 193.95. The net turnover during the day was Rs. 49513172.00.

Source : Equity Bulls

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TheIndiaCements INE383A01012 RatingUpdate