Bank loan

CRISIL reaffirms the ratings of Cera Sanitaryware’s bank credit facilities; Stock soars 2%

CRISIL Ratings reaffirmed its “CRISIL AA- / Stable / CRISIL A1 +” ratings on the banking facilities of CERA Sanitaryware Ltd (CERA) valued at Rs 100 (instead of 67 Cr) and reaffirmed its “CRISIL A1 +” rating on the commercial paper program.

The ratings continue to reflect the company’s established position in the domestic sanitary ware industry, supported by a diversified revenue profile with a presence in various markets in the south, east, north and west.

The company has diversified into related construction products such as faucets, tiles and wellness products, and benefits from its extensive distribution network. Additionally, operational efficiency is supported by a mix of manufacturing and outsourcing.

The financial risk profile is healthy, supported by strong leverage indicators and strong excess liquidity.

These strengths are partially offset by the company’s modest presence in the plumbing and tile segments, its vulnerability to increased competition in the construction products sector and its exposure to risks inherent in the real estate sector.

CRISIL Ratings combined the commercial and financial risk profiles of CERA and its joint ventures.

At around 10:18 a.m., Cera Sanitaryware was trading at Rs 4,309.60 each, up Rs 92.7 or 2.2% on BSE.


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