CARE Ratings upgrades Garware Hi-Tech Films long term bank facilities to CARE A+, reaffirms CARE A1 rating for short term bank facilities

CARE Ratings Limited, a leading credit rating agency in India, has upgraded the long-term bank facilities rating of Garware Hi-Tech Films Limited to A+, Stable and reaffirmed the credit rating of short term bank facilities as CARE Al.

The revision in the ratings assigned to the bank facilities of Garware Hi-Tech Films Limited (GHFL; erstwhile known as Garware Polyester Limited) factors in the overall business risk profile driven by healthy topline growth and improved PBILDT margins backed by improved product mix and healthy capacity utilization.

The ratings also factors successful commissioning of the new product line, Paint Protection Film in April 2021 which is expected to further support revenue and margin growth going ahead. The rating revision also considers that. GHFL will sustain the improvement in its financial risk profile, over the medium term, supported by steady cash generation.

Commenting on the ratings upgrade Ms Monika Garware, the Vice Chairperson and the Joint Managing Director said, "We continue to focus on growth & this improved rating is a continued validation of GHFL's healthy performance. GHFL has capability to produce, around 10 Micron to 350 Micron different thickness Specialty PET films for various end applications. Ability to modify the features. for various end applications of its products help GHFL to adequately cater the diverse needs: of its customers. CARE Ratings has considered the strong operating metrics and competitive strengths of GHFL in the performance film industry."

The long-term bank facilities Rs 422.08cr (enhanced from Rs 369.81cr) is CARE A+ / stable. For Short term Bank Facilities (Rsi98.19cr) the rating is CARE Al.

Shares of GARWARE POLYESTER LTD. was last trading in BSE at Rs.928 as compared to the previous close of Rs. 934.2. The total number of shares traded during the day was 4622 in over 188 trades.

The stock hit an intraday high of Rs. 944 and intraday low of 925. The net turnover during the day was Rs. 4319039.

Source : Equity Bulls

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