Deccan Cements rises after Infomerics Ratings assigns 'BBB+/positive' rating to proposed NCDs

Deccan Cements advanced 2.05% to Rs 1121.60 after the company said that Infomerics Ratings has assigned 'IVR BBB+/Positive' rating to the proposed non-convertible debentures (NCDs) of the company.

Infomerics Ratings stated that the rating is based on strengths derived from experienced management and long track record of operations, integrated nature of operations and modest debt protection metrics & capital structure.

The rating is, however, constrained by project execution risk, sharp fall in profitability in FY25, albeit favourable demand outlook and exposure to volatility in input costs, price realisations, and industry cyclicality.

The positive outlook reflects the expectation of improvement in overall performance post completion of capex, which is progressing on time as per the revised schedule and expected to be operational from 1st January 2026.

The agency further said that substantial & sustained improvement in total operating income and EBITDA margins leading to improvement in debt protection metrics and capital structure; and Timely completion of capex and generation of the cash flow as projected could be positive for the ratings.

However, any decline in revenue and/or EBITDA margin leading to deterioration in debt coverage indicators and/or any stretch in operating cycle impacting the liquidity position and capital structure; and any time or cost overrun in the ongoing debt funded capex could lead to negative rating action.

Deccan Cements is engaged in the manufacturing of cement. The present cement capacity of the company is at 2.2 million tonnes per annum (MTPA). The company has a total power generating capacity of 30.775 MW.

The company's net profit surged to Rs 15.35 crore in the quarter ended June 2025 as against Rs 2.81 crore during the previous quarter ended June 2024. Sales declined 12.54% to Rs 150.56 crore in Q1 FY26 over Q1 FY25.

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