India Ratings downgrades Sanghi Industries and its NCDs to 'IND BBB' / Negative

India Ratings and Research (Ind-Ra) has downgraded Sanghi Industries Limited's (SIL) Long-Term Issuer Rating to 'IND BBB' from 'IND A-'. The Outlook is Negative.

The downgrade and the Negative Outlook reflect the delays in the management's liquidity infusion plan and the challenges around cash flow generation starting mid-FY23, coinciding with the seasonally weak monsoon quarters, which could get exacerbated in the context of input cost inflation. Timely infusion of funds by the management in 2QFY23 and a ramp-up of volumes and EBITDA after a weaker-than-expected performance in FY22 will remain a key monitorable.

Source : Equity Bulls

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