CRISIL reaffirms ratings of LT foods; revises outlook to 'stable'

LT foods informed that CRISIL had reaffirmed the company long term rating at 'CRISIL A-' and the short term rating at 'CRISIL A2+', while revising the outlook on the long term bank loan facilities to 'stable'.

Offering the rating rationale, the ratings agency said that the ratings continue to reflect the LT group's strong market position in the basmati rice industry, resulting in sales growth and stable profitability.

The ratings also factor in the group's diversified geographical reach through strong brands, (Daawat in the domestic market, and Royal in the US market), an established marketing network, and improving financial risk profile.

These strengths are partially offset by the working capital requirements, and susceptibility to volatile raw material prices, and any adverse changes in government policies. The announcement was made after market hours yesterday.

LT Foods is a branded specialty foods company. The company is engaged in milling, processing and marketing of branded and non-branded basmati rice, and manufacturing of rice food products in the domestic and overseas market. Its geographical segments include India, North America and Rest of the world.

Shares of LT Foods ended 1.63% higher at Rs 15.60 yesterday 25 March 2020.

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