Amines & Plasticizers Limited Secures Strong Credit Ratings from ICRA

Amines & Plasticizers Limited , a key player in the chemical industry, has received a vote of confidence from ICRA Ltd, one of India's leading credit rating agencies. The company announced that ICRA has taken rating actions on its bank facilities totaling Rs. 179.75 crore, reaffirming and assigning strong ratings across various categories.

Rating Details

ICRA's rating actions for Amines & Plasticizers Limited's bank facilities are as follows:

Facility Type	Amount (Rs. Crore)	Rating	Action
Long-term Fund-based Working Capital	100.00	[ICRA]A (Stable)	Reaffirmed
Long-term Interchangeable	42.00	[ICRA]A (Stable)	Reaffirmed
Short-term Non-fund Based	29.75	[ICRA]A1	Reaffirmed and Assigned for enhanced limits
Short-term Fund-based (Others)	50.00	[ICRA]A1	Newly Assigned

Key Highlights

Working Capital Strength: The reaffirmation of [ICRA]A (Stable) rating for the company's Rs. 100.00 crore long-term fund-based working capital facilities indicates a strong financial position and ability to meet working capital needs.
Flexible Financing: The long-term interchangeable facilities of Rs. 42.00 crore also received a reaffirmed [ICRA]A (Stable) rating, suggesting financial flexibility for the company.
Enhanced Short-term Facilities: ICRA reaffirmed and assigned the [ICRA]A1 rating for the company's short-term non-fund-based facilities, which were enhanced to Rs. 29.75 crore.
New Credit Facility: A new short-term fund-based facility of Rs. 50.00 crore received an [ICRA]A1 rating, indicating a very strong degree of safety regarding timely payment of financial obligations.

Implications

The strong ratings across various categories of bank facilities reflect ICRA's confidence in Amines & Plasticizers Limited's financial stability and operational capabilities. The [ICRA]A rating for long-term facilities indicates adequate safety and low credit risk, while the [ICRA]A1 rating for short-term facilities suggests very strong capacity for timely payment of short-term debt obligations.

These ratings may potentially benefit the company by:

Enhancing credibility with lenders and stakeholders
Possibly leading to more favorable borrowing terms
Supporting the company's growth and expansion plans

As Amines & Plasticizers Limited continues to navigate the dynamic chemical industry landscape, these strong credit ratings provide a solid foundation for its financial operations and future endeavors.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.39%	+3.61%	-3.29%	+0.55%	-22.31%	+34.28%

Amines & Plasticizers , a leading chemical manufacturing company, has released its fourth quarter financial results, showcasing a mixed performance with improved margins despite a decrease in revenue.

Financial Highlights

Metric	Q4 (Current)	Q4 (Previous Year)	QoQ Change
Revenue	₹1.65 billion	₹1.77 billion	-6.78%
EBITDA	₹210 million	₹220 million	-4.55%
EBITDA Margin	12.65%	12.43%	+0.22%
Net Profit	₹128 million	₹129.4 million	-1.08%

Revenue and Profitability

Amines & Plasticizers reported a consolidated revenue of ₹1.65 billion for the fourth quarter, marking a 6.78% decrease from ₹1.77 billion in the same period last year. Despite the revenue decline, the company managed to improve its EBITDA margin, which rose to 12.65% from 12.43% year-over-year.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹210 million, compared to ₹220 million in the corresponding quarter of the previous year. This represents a slight decrease of 4.55%, which is less pronounced than the decline in revenue, indicating improved operational efficiency.

Net Profit

Consolidated net profit for the quarter was ₹128 million, showing a marginal decrease of 1.08% from ₹129.4 million reported in the same quarter of the previous year. However, on a sequential basis, the net profit improved significantly, rising from ₹98 million in the previous quarter to ₹128 million, marking a 30.61% increase quarter-on-quarter.

Margin Improvement

The improvement in EBITDA margin from 12.43% to 12.65% suggests that Amines & Plasticizers has been successful in managing its operational costs effectively, even in the face of reduced revenue. This could be attributed to better cost control measures or a more favorable product mix during the quarter.

Quarterly Comparison

While the year-over-year comparisons show slight declines in key metrics, the quarter-on-quarter improvement in net profit is a positive sign for the company. The significant increase from ₹98 million in the previous quarter to ₹128 million in the current quarter indicates a strong recovery and improved performance within the fiscal year.

Amines & Plasticizers' ability to maintain profitability and improve margins in a challenging environment demonstrates the company's resilience and operational efficiency. Investors and stakeholders will likely be watching closely to see if this trend of margin improvement continues in the coming quarters, especially if the company can couple it with a return to revenue growth.