As per the enclosed letter.
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Awaiting price reaction for this filing.
CARE Ratings has reaffirmed Keerthi Industries' long-term credit rating at 'CARE B; Stable' for bank facilities totaling ₹30.26 crore (cash credit ₹6.29 cr, term loan ₹18.97 cr, bank guarantee ₹5.00 cr). The rating reflects sharp deterioration in FY25 performance — revenue fell ~44% to ₹119.88 crore from ₹212.24 crore, with an operating loss of ₹17.41 crore and net loss of ₹22.77 crore. Cement division capacity utilization dropped to 43% in FY25 from 73% in FY24, though it partially recovered to ~56% in Q1FY26. The company repaid its outstanding term debt and Axis Bank working capital borrowings using proceeds from the slump sale of its electronics division, reducing some debt pressure. Promoters also infused ₹26.54 crore in unsecured loans, treated as quasi-equity. However, liquidity remains stretched with cash balance of just ₹0.30 crore as of March 2025 and working capital utilization at 99.54%.
Despite the 'Stable' outlook, 'CARE B' sits in the high-risk/speculative grade category, reflecting significant credit weakness. Shareholders should weigh persistent operational losses, regional concentration in Andhra Pradesh/Telangana, and stretched liquidity against the positive of debt reduction from the electronics division sale.