India Rating and Research (Ind-Ra) on Tuesday has affirmed the rating of Gujarat State Fertilisers and Chemicals Limited GSFC.  The rating on long-term bank facilities has been affirmed at IND AA+/stable/IND Al + and India A1+ on short-term bank facilities. The company’s rating on commercial paper issue size of Rs. 100 cr has been affirmed India A1+ as per regulatory filing by the company on Tuesday. 

The Outlook revision reflects India Rating and Research’s view that the consolidated entity’s operating performance will be weaker than expected in FY20, as the delayed monsoons and elongated rains, and a sharp decline in the caprolactam-benzene spreads (which drive the profitability of the industrial segment) during 1HFY20 would collectively result in lower-than-anticipated profitability. 

Given that the realizations have remained benign even post H1FY20, Ind-Ra expects the industrial segment’s profitability to remain subdued during the year.

Reacting to the developments, shares in Gujarat State Fertilizers & Chemicals Ltd ended at Rs. 75.55 per unit, up by Rs2.2 or 3 percent on the Bombay Stock Exchange.

Sensex, Nifty sparkle for Fifth consecutive Day

Maintaining 4pc inflation appropriate for India: RBI paper

Petrol and diesel prices change again, know latest prices here