CRISIL Ratings has upgraded the ratings on the bank facilities of Scoobee Day Garments India Limited (SDGIL) to 'CRISIL BB-/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'.
The rating upgrade reflects significant growth in the business profile till Q3, FY23. As per Q3 result, revenue has increased from Rs 27.97 crore in Q3 FY22 to be around Rs 36.93 crore in Q3 FY23 supported by continuous order flow. Revenue is expected to grow at a range of 10-15% over the medium term driven by promoter's extensive experience. Operating margin is also expected to sustain at a range of 20-22% as per Q3 FY23 since company is focusing on manufacturing kids wear which has better margins in RMG Sector. Financial risk profile is expected to improve with steady accretion to reveres, growth in the scale of operation. Debt protection metrics is supported by healthy interest coverage ratio of 2.27 as per FY22. Liquidity is expected to be adequate considering low bank line utilization and support of unsecured loans or intercorporate loans from Kitex- Anna Group.
The rating continues to reflect the extensive industry experience of the promoters and funding support from them and moderate debt profile. These rating strengths are partially offset by moderate scale of operations and weak capital structure.
Shares of Scoobee Day Garments India Limited was last trading in BSE at Rs. 98.21 as compared to the previous close of Rs. 97.00. The total number of shares traded during the day was 825 in over 44 trades.
The stock hit an intraday high of Rs. 104.99 and intraday low of 91.54. The net turnover during the day was Rs. 80349.00.