Sukhjit Starch & Chemicals Limited has informed the Exchange about Credit Rating
SUKHJITS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
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CRISIL has revised the outlook on Sukhjit Starch & Chemicals' long-term bank facilities (Rs. 405 crore) and fixed deposits (Rs. 90 crore) to 'Negative' from 'Stable', while reaffirming the long-term rating at Crisil A+ and short-term rating at Crisil A1. The negative outlook reflects moderation in operating performance, with FY25 operating margin falling to 6.93% from 9.20% in FY24 due to maize price volatility. Revenue grew to Rs. 1,487 crore (from Rs. 1,370 crore), but profit after tax declined to Rs. 39.48 crore (from Rs. 55.62 crore), and interest coverage weakened to 3.56 times (from 4.14 times). Margins are expected to improve to 8-9% in FY26, but further moderation remains a key risk.
The negative outlook signals potential risk of a future rating downgrade if margins and accruals don't recover. While the company retains a strong market position, healthy capital structure (gearing 0.49x), and strong liquidity, shareholders should monitor margin trends and debt protection metrics closely as these are key rating triggers.