Ram Ratna Wires Limited has informed the Exchange about Credit Rating
RAMRAT · price
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CARE Ratings has assigned a CARE A-; Stable rating to a new long-term term loan of ₹188.95 crore and reaffirmed ratings on existing bank facilities of Ram Ratna Wires Limited, with the outlook maintained at Stable. The total rated bank facilities stand at ₹961.95 crore, with several limits enhanced — long-term cash credit raised to ₹105 crore (from ₹70 crore), combined long-term/short-term working capital limits raised to ₹355 crore (from ₹210 crore), and short-term non-fund-based limits raised to ₹313 crore (from ₹183 crore). The rating continues to factor in the company's strong position in the copper winding wire industry, its recently commissioned copper tubes plant at Bhiwadi (started June 2025), and healthy growth in FY25 revenue to ₹3,684 crore (up 23%). Weaknesses noted include thin PBILDT margin of 4.46%, rising overall gearing to 1.28x in FY25 from 0.85x due to debt-funded capex, and susceptibility to copper price volatility.
Reaffirmation of the existing rating along with a Stable outlook signals continued creditworthiness and lenders' comfort with the company's expansion plans. The enhanced bank limits and new term loan rating expand the company's available funding capacity to support its copper tubes capex and working capital needs, which is a positive for growth, though shareholders should note rising leverage and modest profitability margins.