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HomeIndustry & UpdatesUttam Sugar Mills rallies 5.5% after rating outlook revised to 'Positive' by...

Uttam Sugar Mills rallies 5.5% after rating outlook revised to ‘Positive’ by ICRA

Uttam Sugar Mills Ltd has infomed that ICRA has assigned the ratings for various bank facilities obtained by the Company.

Long-tern ratings has been reaffirmed to [ICRA] BB+ and outlook revised to positive from stable where short-term ratings has been reaffirmed to [ICRA] A4+.

According to the rationale report, the rating action for the debt programmes of Uttam Sugar Mills Limited (USML) factors in the expectation of healthy growth in operating revenues and profits, in addition to strengthening of debt protection metrics in FY2022.

ICRA expects USML’s revenues to grow by 7-12% YoY in FY2022, driven by better distillery performance and improved realisations from sugar sales, despite stagnant growth in sugar volumes (both domestic and exports).

The ratings continue to factor in USML’s established operational track record with a crushing capacity of 23,750 tonnes of cane per day (TCD) across UP and Uttarakhand, in addition to healthy crushing volumes and recovery rates.

The Positive outlook on the rating reflects ICRA’s opinion that USML will continue to benefit from its improved operational profile with expanded distillery capacities, lower volatility and expansion of operating profits.

At around 11:19 AM, Uttam Sugar Mills was trading at Rs180.10 apiece up by Rs9.35 or 5.48% on the BSE.

The above news was originally posted on www.indiainfoline.com

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