CRISIL assigns rating to debt facilities of Andrew Yule & Co. Ltd.

CRISIL Ratings Ltd. has assigned the long-term rating as 'CRISIL BBB-/Negative' and the short-term rating as 'CRISIL A3' to the bank loan facilities of Rs.155.00 crore (enhanced from Rs.125.00 crore) of Andrew Yule & Co. Ltd. (AYCL).

Detailed Rationale:

CRISIL Ratings has revised its outlook on long-term bank facilities of AYCL to 'Negative' from 'Stable' while reaffirming the rating at 'CRISIL BBB-'. Short-term rating has been reaffirmed at 'CRISIL A3'.

The outlook revision factors in deterioration in business risk profile as reflected in modest profitability during five fiscals through fiscal 2023. Operating margins were estimated to be around -6% in fiscal 2023 on account of lower revenue generation in Q3 of fiscal 2023 coupled with losses incurred in Q4 of fiscal 2023. The operating profitability were lower due to increase in employee wages for tea plantation workers w.e.f. January 2023 and lower realization in tea due to surplus crop in the market. However, improvement in revenues and profitability in electrical and engineering divisions supported scale of operations. Going forward, recovery in overall scale of operations remains key rating sensitivity factor. The ratings continue to reflect the established position in the tea industry along with continued support from Government of India and moderate capital structure. These strengths are partially offset by modest debt protection metrices and susceptibility of profitability to fluctuations in tea prices.

Shares of ANDREW YULE & COMPANY LTD. was last trading in BSE at Rs. 24.93 as compared to the previous close of Rs. 25.21. The total number of shares traded during the day was 82380 in over 333 trades.

The stock hit an intraday high of Rs. 25.80 and intraday low of 24.60. The net turnover during the day was Rs. 2060346.00.

Source : Equity Bulls

Keywords

ANDREWYULEandCOMPANY INE449C01025 RatingUpdate