Birla Cable Limited has informed the Exchange about Credit Rating- Revision
BIRLACABLE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings has reaffirmed Birla Cable's long-term bank facility rating at CARE BBB+; Stable for ₹55 crore (reduced from ₹70 crore), and reaffirmed the credit-enhanced rating of CARE A1+(CE) for short-term facilities of ₹176 crore. However, the outlook on the ₹120 crore long-term credit-enhanced facility was revised from Stable to Negative, driven by the Negative outlook on its guarantor Vindhya Telelinks Limited (VTL). The Negative outlook reflects VTL's stretched working capital cycle (143 days in FY25 vs 111 days in FY24), higher receivables, and moderation in profitability due to weak optical fibre cable (OFC) demand. BCL's standalone FY25 performance showed revenue declining to ₹663 crore (from ₹689 crore) and PAT falling sharply to ₹4.89 crore (from ₹22.14 crore), though overall gearing improved to 0.44x. The unsupported (standalone) rating of CARE BBB+/CARE A2 was reaffirmed, and a short-term facility rating was withdrawn as it was unused.
The Negative outlook on the credit-enhanced rating signals heightened concern about the guarantor's (VTL) financial health and may pressure Birla Cable's borrowing costs or access to credit. BCL's own standalone outlook remains Stable, supported by MP Birla Group backing, but shareholders should monitor OFC demand recovery and working capital trends closely.