Hind Rectifiers Ltd - Rating outlook revised to 'Stable', Ratings Reaffirmed

CRISIL Ratings has revised its outlook on the long-term bank facilities of Hind Rectifiers Limited (HRL) to 'Stable' from 'Positive' while reaffirming the rating at 'CRISIL BBB-'; the short-term rating has been reaffirmed at 'CRISIL A3'.

The revision in the outlook reflects deterioration of the business profile of the company in H1 of fiscal 2023. The company reported revenues of Rs. 150 crore and operating loss in H1 of fiscal 2023. This was due to significant increase in prices of the raw material and execution of existing contracts at lower prices. Improvement of the operating margins over the next quarter would remain a key monitorable. Rating is supported by comfortable financial risk profile and adequate liquidity with cushion in bank limits to meet repayments.

The ratings continue to reflect the extensive experience of the promoters of HRL in the power electronic equipment industry, strong order book providing revenue visibility, comfortable financial risk profile. These strengths are partially offset by end-user industry concentration in revenue and tender-based operations volatile operating margins and large working capital requirements.

Shares of Hind Rectifiers Limited was last trading in BSE at Rs. 236.75 as compared to the previous close of Rs. 231.00. The total number of shares traded during the day was 793 in over 72 trades.

The stock hit an intraday high of Rs. 237.30 and intraday low of 225.90. The net turnover during the day was Rs. 184751.00.

Source : Equity Bulls

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HindRectifiers INE835D01023 HIRECT RatingUpdate RatingOutlook