ICRA credit rating – 28 July 2022
Highlights:
- OPM and NPM expanded to 3.0% and 2.1% respectively in FY2022 (from 2.5% and 1.4% in FY2021) due to improved product mix, and strong IT demand amidst tight supplies.
- The company’s gearing and Total debt/Newt worth ratio remained strong at 0.1x and 2.0x respectively due to low working capital debt utilization. Adjusted for cash reserves, the net TOL/TNW was ~1.4x.
- The well-established relationships with vendors aid REDIL towards favourable credit periods, which reduces its working capital intensity. Further, comprehensive contracts with vendors de-risk REDIL from any risks of product and technology-related obsolescence.
https://www.icra.in/Rationale/ShowRationaleReport/?Id=113537
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