Veljan Denison Limited- Disclosure regarding the Credit rating of the Company by the registered Credit Rating Agency CARE Ratings Limited for F Y 2025.-as attached
VELJAN · price
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CARE Ratings has reaffirmed its credit rating on Veljan Denison Limited's bank facilities as BBB+ (Stable) for long-term and A2 for short-term, with no change in rating or outlook. The company's long-term bank facility was enhanced from Rs. 20 crore to Rs. 30 crore, indicating improved access to credit. Total operating income grew about 13% in FY25 to Rs. 155.70 crore, while profit after tax rose to Rs. 23.72 crore. The company maintains a very strong financial position with negligible debt (overall gearing of 0.05x) and high interest coverage of nearly 58 times. CARE cited experienced promoters, healthy margins, comfortable capital structure, and stable industry outlook as positives, while flagging moderate scale, competition, raw material price volatility, and a long working capital cycle (233 days) as concerns.
The reaffirmation of BBB+ rating with stable outlook signals continued creditworthiness and should support borrowing costs. Shareholders can take comfort from the strong balance sheet and earnings growth, though the long working capital cycle and competitive industry remain watchpoints.