CRISIL Ratings improved its ratings on Prince Pipes and Fittings Limited (PPFL) Total Bank Loan Facilities o Rs469cr. The long-term rating was upgraded to CRISIL A / Positive from CRISIL A- / Stable and the short-term rating was upgraded to CRISIL A1 from CRISIL A2 +.
“The rating upgrade reflects CRISIL’s expectations that PPFL’s business risk profile will continue to strengthen over the medium term, supported by continued revenue growth and profitability.
The company experienced nearly 27% year-on-year revenue growth in fiscal 2021, primarily driven by an average achievement up nearly 22% year-on-year, and supported by growth volumetric by almost 4%, ”the company told CRISIL Ratings.
He added that the sharp increase in the prices of raw materials, mainly that of polyvinyl chloride (PVC), led to the achievement of the year. The increase in revenues and inventory gains resulted in a sharp increase in operating profitability to 17.6% in fiscal 2021, compared to 14.1% in fiscal 2020. Despite the moderation commodity prices, sustained demand from the affordable housing segment, plumbing and SWR segments, driven by the government’s focus on water supply and higher budget allocations for urban development will continue to stimulate the company’s revenue growth in the medium term.
At the close, Prince Pipes & Fittings Ltd was trading at Rs707 per coin, down Rs13.35 or 1.85% from its previous close of Rs720.35 per coin on BSE.