ITI Limited has informed the Exchange about Credit Rating
ITI · price
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ITI Limited has been assigned a credit rating of IND BB+/Stable (long-term) and IND A4+ (short-term) by India Ratings & Research for its bank facilities totaling approximately ₹48,517 million. The rating covers fund-based working capital limits (₹13,647.6 million), non-fund-based working capital limits (₹22,163.9 million), and proposed working capital limits (₹852.4 million fund-based and ₹11,853 million non-fund-based). This is an 'Assigned' rating, meaning it's a new rating. The agency cited weak profitability (EBITDA losses of ₹1,536 million in FY23 and ₹3,190 million in FY24), high customer concentration with government entities, and weak corporate governance as concerns. On the positive side, ITI's revenue recovered to ₹25,707 million in 9MFY25 with a strong order book of ₹1,59,648 million, and the Government of India owns 90% of the company providing strong parental support.
The BB+ rating is a speculative (below investment) grade, reflecting ITI's weak financial health and historical losses, which may concern investors. However, the rating action is 'Assigned' (new) rather than a downgrade, and the stable outlook combined with strong government ownership and a robust order book provides some comfort for existing shareholders.