Fine Organic Industries has informed that ICRA Limited has updated its credit ratings of the Company as under:
Long term ratings has been reaffirmed to [ICRA] AA- with stable ouotlook and in the same way short term ratings has been reaffirmed to [ICRA] A1+.
According to the Rationale report, the rating reaffirmation continues to factor in the strong financial profile of Fine Organic Industries Limited characterised by healthy profitability, cash accruals and return indicators, comfortable capital structure and strong liquidity position and the positive demand outlook for the company’s products in the domestic as well as export markets.
The ratings also consider the low customer concentration risks and the long-term relationships enjoyed by the company with its domestic and overseas customers, who include reputed players in the petrochemicals and food industries.
The ratings are, however, constrained by the exposure of the company’s profitability to adverse movements in raw material prices since some portion of sales are through client contracts that are typically ‘fixed-price’ in nature.
The Stable outlook on the [ICRA]AA- rating reflects ICRA’s opinion that FOIL will continue to benefit from its extensive track record of operations, positive demand outlook for its products, healthy financial risk profile and commitment to conservative financial policies.
Fine Organic Industries ended at Rs2,542.20 apiece up by Rs115.2 or 4.75% from its previous closing of Rs2,427 apiece on the BSE.