Rating assigned / reaffirmed by Acuite Rating and Research Limited.
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Acuite Ratings has reaffirmed its long-term rating of 'ACUITE BBB-' with a Stable outlook and short-term rating of 'ACUITE A3+' on Gujarat Craft Industries' existing Rs 55 crore bank facilities. Additionally, a fresh long-term rating of 'ACUITE BBB-' with Stable outlook has been assigned to a new Rs 15 crore proposed long-term bank facility, taking the total rated bank facilities to Rs 70 crore. The company's revenue grew to Rs 202.90 crore in FY25 from Rs 175.58 crore in FY24, though PAT dipped slightly to Rs 2.69 crore from Rs 3.03 crore. The reaffirmation reflects steady operations, experienced management, and adequate liquidity, though concerns remain around working capital intensity (~90% bank limit utilization) and exposure to raw material and forex price fluctuations.
Reaffirmation of existing ratings with a Stable outlook signals unchanged creditworthiness and no immediate borrowing cost concerns for shareholders. The assignment of a new Rs 15 crore credit line suggests the company is expanding its debt capacity to support growth, which could aid operations but also increase leverage (gearing already rose to 1.43x from 1.26x).