CARE Ratings has reaffirmed Welspun Corp Limited’s (WCL) Long Term Bank Facilities and Non-Convertible Debentures at ‘CARE AA+; Stable’. The rating for short-term facilities and commercial paper remains at ‘CARE A1+’. The reaffirmation highlights WCL’s strong business risk profile, healthy capital structure, sustained profitability, and a robust order book providing medium-term revenue visibility.
Welspun Corp’s Long-Term Ratings Reaffirmed
CARE Ratings has confirmed its rating for Welspun Corp Limited’s (WCL) Long Term Bank Facilities and Non-Convertible Debentures, maintaining them at ‘CARE AA+; Stable’. The agency also reaffirmed the rating on the company’s short-term facilities and commercial paper at ‘CARE A1+’.
Key Rating Strengths
The reaffirmation is driven by several key factors:
- Strong Business Risk Profile: WCL benefits from extensive promoter and management experience in the steel pipes business, a long operational track record, and a dominant position in the Indian and US welded pipes manufacturing industry, especially in large diameter line pipes.
- Sustained Profitability: The company has demonstrated a sustained improvement in profitability, supported by healthy operating cash flows and strong capital structure.
- Healthy Financial Risk Profile: WCL maintains a robust financial standing, evidenced by strong cash accruals and a healthy liquidity position.
- Robust Order Book: A healthy order book position provides medium-term revenue visibility, underpinned by strong brand recall leading to continuous order inflows from domestic and international markets.
Stable Outlook
The ‘Stable’ outlook assigned by CARE reflects the expectation that WCL will sustain its strong market position. This, combined with a favorable demand scenario in domestic, US, and export markets, and optimal capacity utilization of its expanded facilities, will enable the company to maintain its healthy business risk profile over the medium term. The rating on non-convertible debentures with ISIN INE191B07162 amounting to ₹200 crores has been withdrawn based on redemption and receipt of a No dues certificate.
Source: BSE
