Please find herewith the credit rating received from CARE Ratings Limited
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Awaiting price reaction for this filing.
CARE Ratings has reaffirmed KG Petrochem's credit ratings for bank facilities totaling Rs. 121.69 crore. The long-term facilities of Rs. 14.94 crore retain a rating of CARE BBB- with Stable outlook, while long-term/short-term facilities of Rs. 91.00 crore are rated CARE BBB-/A3, and short-term facilities of Rs. 15.75 crore carry CARE A3. This is the same rating level assigned in June 2024, which itself was a downgrade from the earlier CARE BBB; Stable / A3+ rating. The company reported total operating income of Rs. 334.35 crore in FY24, growing 9% year-on-year, with operating margin recovering to 8.58% in 9MFY25 from 6.48% in FY24. Overall gearing stood at 0.93x in FY24, and the rating carries a Stable outlook.
The reaffirmation signals that CARE sees no further deterioration in credit quality since last year's downgrade, which is modestly positive. However, the ratings remain at the lowest investment-grade level (BBB-) with constrained factors like leveraged capital structure, concentrated export-dependent revenue (~76% from exports), and weak artificial leather segment performance — limiting any near-term positive momentum for the stock.