Plaza Wires 5 year Profit CAGR at -12%, CRISIL Suggests Moderate Credit Risk
Credit Rating Information Services of India Limited (CRISIL) has revised its outlook on the long-term bank facilities of Plaza Wires Ltd. (PWL) to ‘Negative’ from earlier ‘Stable’ while reaffirmed the Long-Term rating of Plaza Wires to ‘CRISIL BBB-‘. Thus, CRISIL has downgraded the Long Term Rating of Plaza Wires to ‘BBB-/Negative’ from earlier ‘BBB-/Stable’.
Long-term credit rating of Plaza Wires indicates that the company carries moderate credit risk regarding timely servicing of financial obligations. This long-term credit rating considers a period of more than one year. CRISIL mentioned “The revision in outlook reflects weakening in the operating margin of PWL, which has weakened the overall business risk profile. Operating margin had dropped to 5.0% in fiscal 2024, and 3.1% in the first half of fiscal 2025, which is below expectations of Crisil Ratings”
Compounded Annual Growth Rate (CAGR) for the company’s profit and sales for the last 5 years was -12% and 5% respectively.
During Q3 of FY-25, Plaza Wires reported a revenue of Rs. 49.63 crore and a Profit After Tax (PAT) of Rs. 0.21 crore. The company also recently commenced production at its cable manufacturing plant located in Solan, Himachal Pradesh.
