India Ratings assigns Sutlej Textiles and Industries 'IND A+'/Stable & its CP 'IND A1+'

India Ratings and Research (Ind-Ra) has assigned Sutlej Textiles and Industries Limited (Sutlej) a Long-Term Issuer Rating of 'IND A+'. The Outlook is Stable.

The ratings reflect Sutlej's established position in India's value-added spun-dyed yarn industry and strong clientele. The rating is further supported by an improvement in profitability on account of an improvement in the gross margin, supported by an increase in realisations as well as structural changes in costs by way of rationalising the manpower and energy costs, and reduced dependency on outside suppliers for its polyester staple fibre (PSF) requirement. The ratings are also supported by the company' adequate liquidity position and an improvement in the credit metrics in 1HFY22. However, the ratings are constrained by the company's loss-making Home Textile division, exposure to volatility in raw material prices and inherent textile industry risks.

Shares of Sutlej Textiles and Industries Limited was last trading in BSE at Rs. 72.90 as compared to the previous close of Rs. 73.35. The total number of shares traded during the day was 6333 in over 213 trades.

The stock hit an intraday high of Rs. 75.00 and intraday low of 72.40. The net turnover during the day was Rs. 464967.00.

Source : Equity Bulls

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SutlejTextilesandIndustries INE645H01027 RatingUpdate