Acuite upgrades long-term rating of Bharat Wire Ropes Ltd

Acuité has upgraded the long-term rating to 'ACUITE BBB' (read as ACUITE triple B) from 'ACUITE BBB-' (read as ACUITE triple B minus) and Short term rating to 'ACUITE A3+' (read as ACUITE A three plus)' from 'ACUITE A3' (read as ACUITE A three) to the Rs.223.00 Cr. bank facilities of Bharat Wire Ropes Limited (BWRL). The outlook is 'Stable'.

The rating upgrade factors sustained improvement in operating and financial performance of GAPL over the last three years. The revenue of the company grew at a compounded annual growth (CAGR) of 33.04% over the last three years ended FY2023. The revenue of the company improved to Rs. 589.06 Cr in FY2023 as against Rs.410.68 Cr in FY2022 and Rs.250.17 Cr in FY2021. The improvement in revenue is on account of increase in volume sold and better realisations. The operating profit margin of the company expanded by 842 bps to 23.57% in FY2023 as against 15.15 % in FY2022.

In line with the improvement in operating performance, the financial performance of the firm also recorded an improvement marked by reducing gearing and improving debt protection metrics. The overall gearing of the firm reduced to 0.32 times in FY2023 from 0.60 times in FY2022. The Total Outside Liabilities to tangible net-worth ratio of the firm stood at 0.37 times as on March 31, 2023. Driven by improving profitability and reducing total debt, the interest coverage of the firm improved to 6.28 times in FY2023 as against 2.68 times in FY2022. With no major debt funded capital expenditure planned over the medium term, Acuite expects the financial risk profile of the firm to remain moderate.

Shares of Bharat Wire Ropes Limited was last trading in BSE at Rs. 184.60 as compared to the previous close of Rs. 175.50. The total number of shares traded during the day was 120210 in over 2253 trades.

The stock hit an intraday high of Rs. 185.50 and intraday low of 172.60. The net turnover during the day was Rs. 21652194.00.

Source : Equity Bulls

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