Skipper gains after Acuite Ratings reaffirms LT rating at 'A' with 'stable' outlook

Skipper added 1.44% to Rs 559.80 after Acuite Ratings & Research reaffirmed the company's long-term rating at 'ACUITE A' with 'stable' outlook.

The agency has also affirmed the companys short term rating at 'ACUITE A1'.

AcuitRatings stated that the rating reflects sound business profile characterized by diverse revenue streams and an established customer base, which comprises renowned government undertakings in the power sector, Indian railways, reputable EPC contractors, and telecom companies.

The company has achieved revenues of Rs 2,201.48 crore in H1 FY2025 compared to Rs 1,326.95 crore in H1 FY2024, on account better execution of existing orders. The rating also factors in the healthy order book of Rs 6,590 crore as of September 2024.

The ratings also consider the companys comfortable financial risk profile, marked by a healthy net worth base, low gearing, and moderate debt protection metrics.

However, the ratings are constrained by the companys working capital intensive nature of operations and exposure to commodity risk.

Skipper has a diversified business profile as it has three business segments, viz. engineering, polymer pipes and infrastructure.

The company's consolidated net profit surged 66.48% to Rs 32.93 crore on a 43.68% increase in net sales to Rs 1,109.74 crore in Q2 FY25 as compared with Q2 FY24.

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