Bajaj Electricals rose 1.57% to Rs 1,033 after credit ratings agency ICRA upgraded the credit ratings on the credit facilities of the company.
ICRA upgraded Bajaj Electricals' long-term term loans, long-term fund-based limits, long /short-term non-fund based limits, long /short-term fundbased/non-fund based limits and long-term-NCD programme worth Rs 4,942.50 crore to '[ICRA] A (Stable)' from '[ICRA] A- (Stable)'.
The ratings agency also upgraded its ratings on the short-term fund-based limits of the company to '[ICRA]A1' from '[ICRA]A2+'.
ICRA said that the rating upgrade factors in the improvement in financial profile of Bajaj Electricals in 9MFY2021 on the back strong revenues and profitability posted by the consumer products (CP) segment in Q2 and Q3 of FY2021.
The rating also takes into account the consistent reduction in the company's debt level over the last few quarters, which has helped reduce the interest cost considerably, thereby supporting the debt coverage indicators, it added.
Bajaj Electricals is a part of Bajaj Group. Its business comprises of consumer products manufacturing (appliances, fans, lighting) and execution of EPC contracts (illumination, transmission line towers and power distribution).
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