Websol Energy System Limited has received credit ratings from CRISIL Ratings Limited for its banking facilities, marking a significant development in the company's financial profile. The rating assignment was formally communicated to stakeholders under the regulatory framework of SEBI's disclosure requirements.

Credit Rating Details

CRISIL has assigned a BBB+/Stable rating to the company's credit facilities, covering a total amount of ₹150 crore. The rating applies to two distinct banking arrangements that form the core of the company's credit infrastructure.

The uniform rating across both facilities indicates CRISIL's consistent assessment of the company's creditworthiness and repayment capacity. The BBB+ rating represents an investment-grade assessment, while the Stable outlook suggests that the rating is unlikely to change in the near term.

Regulatory Compliance

The credit rating disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about material events that could impact investor decisions, including credit rating assignments or changes.

Company Secretary and Compliance Officer Raju Sharma signed the formal intimation, ensuring proper documentation and regulatory adherence. The company has also indicated that the detailed rating rationale from CRISIL has been enclosed as an annexure to provide stakeholders with comprehensive information about the assessment criteria and factors considered.

Financial Infrastructure

The rated facilities represent important components of Websol Energy System's financial structure. The cash credit facility of ₹15 crore provides working capital flexibility, while the substantially larger term loan facility of ₹135 crore supports the company's longer-term financing requirements.

This credit rating assignment provides transparency to investors, lenders, and other stakeholders about the company's credit profile as assessed by a recognized rating agency. The BBB+/Stable rating from CRISIL offers an independent evaluation of the company's financial strength and creditworthiness in the capital goods and electrical equipment sector.

Websol Energy System shares experienced a significant rally on Wednesday, surging 14.1% to Rs 97.55 following a major victory in a long-standing tax dispute. The renewable energy company successfully overturned a substantial tax demand that had been weighing on its financial position.

Tax Appeal Victory Eliminates Major Liability

The Commissioner of Income Tax (Appeals), Kolkata, ruled in favor of Websol Energy System for assessment year 2017-18, setting aside a tax demand that had created significant uncertainty for the company. The favorable ruling addresses multiple tax-related issues that had been under dispute.

The company had previously treated the Rs 73.04 crore amount as a contingent liability on its books. With the appellate authority's decision, this substantial overhang has been removed from the balance sheet, providing shareholders with improved clarity on the company's financial position.

Market Response and Current Performance

The announcement triggered immediate buying interest, driving the stock sharply higher during Wednesday's trading session. However, the broader performance context reveals ongoing challenges for the company.

Technical Analysis Shows Mixed Signals

Despite Wednesday's rally, technical indicators present a predominantly bearish outlook for Websol Energy System. The stock trades below six of its eight key simple moving averages, including the 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs. It remains above only its 5-day and 10-day SMAs.

The Relative Strength Index at 30.5 indicates the stock is approaching oversold territory, while the Moving Average Convergence Divergence remains in bearish territory at -8.5, staying below both center and signal lines.

Company Profile

Websol Energy System Limited operates in the renewable energy sector with a focus on solar energy solutions. The company specializes in photovoltaic products and related solar power solutions, serving both domestic and international markets in the clean energy space.