Eureka Forbes Limited , a prominent player in the consumer durables sector, has received a significant boost to its creditworthiness as reflected in the recent rating upgrade by CARE Ratings Limited. The company's Long-Term Bank Facilities and Issuer Rating have been elevated from 'CARE AA-: Stable' to 'CARE AA: Stable', marking an improvement in its financial standing.

Rating Upgrade Details

The credit rating upgrade encompasses two key areas:

Enhanced Financial Capacity

In a notable development, Eureka Forbes has also seen an increase in its Long-Term Bank Facilities. The facilities have been enhanced from INR 288.75 crore to INR 338.75 crore, representing an addition of INR 50.00 crore to its credit line. This expansion in financial resources could potentially provide the company with greater operational flexibility and support for its business activities.

Implications of the Upgrade

The upgrade to 'CARE AA; Stable' indicates a high degree of safety regarding timely servicing of financial obligations. This rating suggests that Eureka Forbes carries very low credit risk, which could translate into several benefits:

1. Improved Borrowing Terms: The company may be able to secure more favorable interest rates on future borrowings.
2. Enhanced Market Perception: A higher credit rating often leads to increased confidence among investors and stakeholders.
3. Financial Stability: The rating reflects CARE's assessment of Eureka Forbes' strong capacity to meet its financial commitments.

Regulatory Compliance

In adherence to regulatory requirements, Eureka Forbes has duly informed the stock exchanges about this rating upgrade. The intimation was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This credit rating upgrade serves as a positive indicator of Eureka Forbes' financial health and may contribute to its strategic positioning in the market. Investors and market observers will likely keep a close watch on how the company leverages this improved financial standing in its future business endeavors.

Eureka Forbes Limited , a leading health and hygiene company in India, has reported robust financial results for the second quarter, demonstrating significant growth across key metrics.

Financial Highlights

For the quarter, Eureka Forbes reported:

Key Performance Drivers

The company's strong performance was driven by several factors:

1. Product Growth: Eureka Forbes achieved high-teens growth in its products business, marking the eighth consecutive quarter of double-digit growth in this segment.

2. Water Purifier Segment: The company saw robust volume-led growth in water purifiers, with notable performance in both economy and premium segments.

3. Cleaning Category: The robotics segment emerged as a significant growth driver within the vacuum cleaner category, performing well across all channels.

4. Service Business: The company reported a double-digit growth in Annual Maintenance Contract (AMC) bookings, indicating a successful turnaround in its service business.

5. Operational Efficiency: Despite increased growth investments, Eureka Forbes managed to improve its EBITDA margin, reaching a lifetime high of 13.10%.

Management Commentary

Pratik Pota, Managing Director & CEO of Eureka Forbes Limited, commented on the results:

"We delivered a strong revenue growth of 14.9% YoY and EBITDA crossed Rs. 100 Cr for the first time at a lifetime high margin of 13.1%."

He further added, "Our revenue growth came on the back of a high-teens growth in Products, with all our categories growing well. In Water, growth came on the back of a scale up of our 2-year range which reduces the cost of ownership significantly. In Cleaning, the biggest engine of growth was the Robotics segment which performed well across all channels."

Conclusion

Eureka Forbes' quarterly results demonstrate the company's ability to drive growth and improve profitability in a challenging market environment. The strong performance across product categories, coupled with improvements in the service business and operational efficiencies, positions the company well for continued success in the health and hygiene sector.