CRISIL Ratings Limited has reaffirmed the long-term and short-term credit ratings for Shyam Metalics and Energy Limited (SMEL). The long-term rating stands at ‘CRISIL AA+/Stable’, and the short-term rating is ‘CRISIL A1+’. The total bank loan facilities rated have been enhanced to ₹4500 Crore from ₹3600 Crore. The reaffirmation reflects the company’s robust financial profile, prudent capital structure, strong liquidity, operational efficiencies, and consistent business growth.
Credit Rating Reaffirmed for Shyam Metalics and Energy Limited
Shyam Metalics and Energy Limited (SMEL) has received a significant endorsement of its financial strength and operational stability, as CRISIL Ratings Limited has reaffirmed its credit ratings. The long-term credit rating for the company’s bank facilities has been re-affirmed at ‘CRISIL AA+/Stable’, and the short-term credit rating has been re-affirmed at ‘CRISIL A1+’.
Enhanced Credit Facilities and Rationale
The total rated bank loan facilities for SMEL have been enhanced from ₹3600 Crore to ₹4500 Crore. Additionally, the commercial paper program of ₹50 Crore has also been re-affirmed at ‘CRISIL A1+’. The rating rationale highlights the company’s established market position in the steel sector, diversified product portfolio, integrated operations, and healthy operating efficiencies. The strong financial risk profile, backed by robust debt protection metrics, is a key driver for these ratings. CRISIL also noted the company’s prudent capital structure, strong liquidity, and consistent business growth.
Key Strengths and Outlook
The reaffirmation underscores SMEL’s strengths, including its established market presence in East India, increasing product diversification, and the promoters’ extensive experience in the steel industry. The company’s operational efficiency, driven by integrated operations and effective working capital management, also contributes positively. Despite ongoing capital expenditure for expansion, the financial risk profile is expected to remain strong. CRISIL Ratings has assigned a ‘Stable’ outlook to the long-term rating, indicating confidence in the company’s future performance and financial stability.
Source: BSE
