Triveni Engineering & Industries Ltd. welcomes long-term credit rating upgrade to AA+ (Stable) by ICRA
Triveni Engineering & Industries Ltd. (TEIL), one of the largest sugar and ethanol producers in the country, a leading player in engineered-to-order high speed gears & gearboxes and water and wastewater management business, announces the upgrade of its long-term rating to ICRA AA+ (Stable) from ICRA AA (Stable) and reaffirmed short-term rating of ICRA A1+ for the Company’s bank facilities of ₹3110.37 crore (enhanced from ₹ 2510.37 crore). This upgrade holds significant value and acknowledges the Company’s strong financial foundation.
City Air News
Apr 1, 2024 11:47
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Noida, April 1, 2024: Triveni Engineering & Industries Ltd. (TEIL), one of the largest sugar and ethanol producers in the country, a leading player in engineered-to-order high speed gears & gearboxes and water and wastewater management business, announces the upgrade of its long-term rating to ICRA AA+ (Stable) from ICRA AA (Stable) and reaffirmed short-term rating of ICRA A1+ for the Company’s bank facilities of ₹3110.37 crore (enhanced from ₹ 2510.37 crore). This upgrade holds significant value and acknowledges the Company’s strong financial foundation.
The outlook on the long-term rating is Stable reflecting the credit rating agency’s opinion that the Company will continue to benefit from its healthy operational profile and comfortable credit metrics. Furthermore, ICRA has reaffirmed the rating at [ICRA]A1+ to the ₹ 300 crore Commercial Paper Programme.
The improved ratings of TEIL acknowledge its extensive operations and high efficiency in sugar operations with a crushing capacity of 61,000 Tonnes of Cane per Day (TCD). Additionally, the rating upgrade is driven by higher revenue diversification through distillation capacity of 660 KLPD which will be further enhanced to 860 KLPD. This coupled with the profitable Engineering businesses provides alternative revenue streams which lends more stability to cash flows.
Following the rating upgrade, Tarun Sawhney, Vice Chairman & Managing Director, Triveni Engineering & Industries Ltd said, "The rating upgrade is a recognition of our cost-efficiencies, healthy cash flows and fiscal discipline highlighting our robust financial performance and strong creditworthiness. The upgrade reaffirms our position as one of the leaders in the industry and underscores our dedication to delivering value to our stakeholders."
