CRISIL reaffirms rating of Sky Industries Ltd, revises outlook

CRISIL has revised its outlook on the long term bank facilities of Sky Industries Limited ('Company') to 'Stable' from 'Positive' while reaffirming the rating at 'CRISIL BB+'. The short term rating has been reaffirmed at 'CRISIL A4+.

The revision in outlook reflects the moderation in SIL's business risk profile with company's operating margin declined sharply to around ~6.5% for the first nine months of fiscal 2023 from around 13% in fiscal 2022 on account of inability to pass on increased raw material prices to customers. However, margins are expected to improve in FY24 with stabilization of raw material prices and will remain monitorable Further, company's financial risk profile continues to remain healthy which supports credit profile of the company.

The ratings continue to reflect the company's established market position in the hook and loop industry, and healthy financial risk profile backed by strong debt protection metrics. These strengths are partially offset by the company's small scale of operations in a highly fragmented industry and modest and fluctuating profitability.

Shares of SKY INDUSTRIES LTD. was last trading in BSE at Rs. 64.89 as compared to the previous close of Rs. 63.81. The total number of shares traded during the day was 1026 in over 11 trades.

The stock hit an intraday high of Rs. 67.97 and intraday low of 62.50. The net turnover during the day was Rs. 65189.00.

Source : Equity Bulls

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SKYINDUSTRIES INE765B01018 RatingUpdate