Shyam Metalics and Energy Limited (SMEL) announced today the reaffirmation of its long-term credit rating at CRISIL AA+/Stable and its short-term rating at CRISIL A1+ by CRISIL Ratings Limited. Additionally, the company’s rated bank debt limit has been enhanced to ₹4,500 Crore from ₹3,600 Crore. These ratings highlight SMEL’s strong market position, financial profile, and operational efficiency.
Credit Ratings Reaffirmed and Enhanced
Shyam Metalics and Energy Limited (SMEL), a prominent integrated multi-metal producer in India, has announced that CRISIL Ratings Limited has reaffirmed its long-term credit rating at ‘CRISIL AA+/Stable’ and its short-term rating at ‘CRISIL A1+’. This reaffirmation underscores the company’s robust market standing in the steel sector, its sound financial health, and efficient operational performance.
Bank Debt Limit Increased
Further strengthening its financial flexibility, CRISIL Ratings has enhanced SMEL’s rated bank debt amount to ₹4,500 Crore, an increase from the previous limit of ₹3,600 Crore. The company’s ₹50 Crore Commercial Paper programme also received a reaffirmed rating of ‘CRISIL A1+’. These developments reflect the agency’s confidence in SMEL’s creditworthiness and its capacity to manage increased debt levels for growth.
Key Drivers for Rating Reaffirmation
The reaffirmation of these ratings is driven by several key factors, including:
- Robust Operating Performance & Growth: Continued strengthening of operating profitability and top-line growth, supported by higher sales volumes.
- Capacity Expansion & Diversification: Strategic expansion into flat steel, pig iron, stainless steel, and aluminium foils, enhancing product diversity and market reach.
- Integrated Value Chain & Efficiency: Operations covering the entire value chain, supported by captive power generation, waste heat recovery, and coal washeries.
- Strong Balance Sheet & Conservative Leverage: A conservative financial structure with a strong net worth, liquidity surplus, and low gearing.
- Disciplined Funding of Growth Capex: Capital expenditure plans to be funded primarily through internal accruals and cash reserves.
- Commitment to ESG & Sustainability: Advancing environmental goals through increased renewable energy consumption and maintaining Zero Liquid Discharge (ZLD) operations.
Management Commentary
Mr. Brij Bhushan Agarwal, Chairman & Managing Director of Shyam Metalics and Energy Limited, stated, “The reaffirmation of our ‘CRISIL AA+/Stable’ and ‘CRISIL A1+’ ratings, along with the enhancement of our rated bank facilities, validates the strength of our business strategy, robust balance sheet, and disciplined execution capabilities.” He added that the company’s focus remains on prudent capital allocation, maintaining strong liquidity, and creating long-term value for all stakeholders.
About Shyam Metalics and Energy Limited
Shyam Metalics is a leading integrated metal producer in India, with operations primarily in the steel sector. The company focuses on Long & Flat Steel Products, Ferro Alloys, Aluminium, and Stainless Steel. With an aggregate installed metal capacity of 16.93 MTPA and a 467 MW aggregated installed capacity of captive power plants, SMEL is a significant player in the Indian metals industry.
Source: BSE
