Mumbai (Maharashtra) [India], July 30 (ANI): Crisil Ratings upgrades Hindalco Industries Ltd’s non-convertible bond ratings to AA-plus, and the outlook from AA is positive and stable.
We also reaffirmed the A1 Plus rating in the company’s commercial paper program.
According to Krisil, the upgrade reflects a steady improvement in performance with sound aluminum demand and price outlook, a better product mix and a clear capital allocation approach.
Better performance supports sound operating cash generation and faster than expected reductions in consolidated net leverage (the ratio of adjusted net liabilities to interest, taxes, depreciation and profit before amortization (EBITDA)). Eventually it will continue to be less than 2.5 times. 2022
According to Chrisil, the rating also provides strong resilience in the business of Hindalco’s subsidiary Novelis, high cost efficiency in Hindalco’s domestic business, and increased attention only to downstream capabilities in both domestic and novelis. Taking this into account, medium-sized operating cash flow should be healthy. period.
While the profitability of the domestic aluminum business is exposed to fluctuations in aluminum prices on the London Metal Exchange (LME), Hindalco’s large downstream business conversion and increased consolidated profitability share in Novelis Brings stability to your total profitability.
Hindalco, the flagship company of the Aditya Birla Group, began operations in 1962 with an aluminum unit installed in Renukot, Uttar Pradesh.
The company is India’s second largest aluminum manufacturer, with an annual production capacity of 1,300 kilotons (ktpa) of aluminum and 2,900 ktpa of alumina. There is a custom smelter with a copper cathode capacity (including recycling) of 421 ktpa in Dahej, Gujarat. (ANI)
Crisil upgrades Hindalco’s long-term rating to AA-plus
Source link Crisil upgrades Hindalco’s long-term rating to AA-plus