KEI’s Credit Ratings upgraded by CARE, ICRA
Credit rating agencies CARE Ratings Ltd. (CARE) and ICRA Ltd. (ICRA) have upgraded the assigned Bank Facilities and Corporate Governance Ratings for KEI Industries Ltd.
KEI’s Bank Facilities and Corporate Governance Rating By CARE:
CARE has upgraded Long Term Bank Facilities rating assigned to KEI from CARE A- to CARE A with stable outlook and Short Term Bank Facilities rating from CARE A2+ to CARE A1.
For Medium Term Instruments Fixed Deposit (FD) Programme CARE has upgraded KEI’s rating from CARE A-(FD) to CARE A (FD): Outlook Stable. CARE has also upgraded KEI’s Commercial Paper rating from CARE A2+ to CARE A1.
Corporate Governance rating of KEI has been reaffirmed by CARE as ‘CARE CGR 3+’ (three plus). This would provide its stakeholders adequate level of comfort on the degree of corporate governance.
KEI’s Bank Facilities Rating By ICRA:
ICRA has upgraded Long Term Bank Facilities rating assigned to KEI to ‘A’ with stable outlook and Short Term Bank Facilities rating to ‘A1’.
Medium Term Instruments Fixed Deposit Programme – ICRA has upgraded the rating assigned to the company to MA+: Outlook Stable. ICRA has upgraded the Commercial Paper rating assigned to KEI to ICRA A1.
Company’s Credit Strength as per ICRA: The vast experience of the company from 1968, has helped company to build strong relationships with prestigious customers such as Power Grid Corporation of India, L&T Limited and Bharat Heavy Electrical Limited. Plus the company has capacity to manufacture wide range of cables -low tension, high tension and extra high voltage. The order book as of May 2019 is more than Rs. 4,700 Cr., including pending orders for EPC division worth Rs. 2,395 Cr.
The company is continuously expanding its distribution network to capture retail sales, as the retail sales has contributed around 33% of the total sales in FY2019. The total strength of dealers was more than 1,450 as of March 2019.
Moreover, the debt levels have reduced from Rs. 843 Cr. (March 31, 2018) to Rs. 600 Cr. (March 31, 2019), which in return has helped company’s liquidity position to improve.
About the KEI Industries Ltd.: KEI Industries Ltd. was established in 1968 as a partnership firm as Krishna Electrical Industries. In 1992 it became public limited company and in 1995 it was listed in stock exchange. Presently, the company manufactures a wide range of cables from low voltage, high voltage and extra high voltage cables to control and instrumentation, specialty cables, house wires and stainless-steel wires. Currently manufacturing units are in Bhiwadi, Chopanki, Pathredi and Silvassa.