India Ratings revises outlook on CCL Products to 'positive'

CCL Products (India) informed that India Ratings and Research revised its outlook on the company to 'positive' from 'stable' while affirming the long-term issuer rating at 'IND AA-'.

India Ratings (Ind-Ra) said that the 'positive' outlook reflects Ind-Ra's expectation of a potential improvement in CCL's scale and product mix in the medium term, backed by steady growth in volume, and share of small packs and domestic business to consumers (B2C) business while maintaining the credit metrics.

The affirmation reflects the company's continued healthy financial profile and robust business profile.

However, a lower-than-expected ramp-up in the scale of operations and/or deterioration in the operating performance and/or unexpected debt-led capex/acquisition leading to the net leverage (net debt/EBITDA) sustaining above 1x could lead to an outlook revision back to 'stable', the credit ratings agency said.

CCL Products (India) is a manufacturer and exporter of powdered and granulated coffee. The company exports instant coffee under different international and domestic brand names.

The company's consolidated net profit rose 13.93% to Rs 43.84 crore on a 12.76% increase in net sales to Rs 326.12 crore in Q1 FY22 over Q1 FY21.

The scrip shed 0.58% to currently trade at Rs 414.50 on the BSE.

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