CareEdge Ratings has upgraded Jindal Stainless Limited’s (JSL) credit rating from AA/stable to AA/stable for long-term bank facilities and non-convertible debentures, a company statement said on Thursday, October 12.
The ratings agency has revised its outlook in view of the performance of the company demonstrated by its consistently improving sales volumes and higher-than-envisaged Profit Before Interest, Lease rentals, Depreciation and Taxation (PBILDT) per metric ton over the last two years, the rating agency note said.
CareEdge also considered the company’s persistent improvement in its debt coverage metrics. It noted that Jindal Stainless Limited has recorded “steady-state improvement” in its sales volumes over the last three years and that it expects the likely continuation of increase in sales volume over the next two years with the commissioning of an additional one million mt per year capacity at Jajpur, Odisha.
“Jindal Stainless’ improved ratings are testimony to our prudent capital allocation policy and robust balance sheet management. Despite being in an organic and inorganic capex cycle, our leverage ratios are amongst the best in the industry. We continue to focus on efficient working capital management and financial discipline to maximize value for all our stakeholders,” JSL executive director and chief financial officer (CFO) Anurga Mantri said in the company statement.