CRISIL Reaffirms Centum Electronics' Credit Ratings at 'CRISIL BBB/Stable / CRISIL A3+'
CRISIL Ratings reaffirmed Centum Electronics' credit ratings at 'CRISIL BBB/Stable / CRISIL A3+' for its ₹399.7 crore bank facilities, citing strong market position and comfortable financials, despite working capital intensity and subsidiary losses.
While the reaffirmation is not an upgrade or downgrade, maintaining a stable credit rating is important for the company's access to financing and perception among investors and lenders. It signals stability but does not introduce new positive or negative catalysts.
The reaffirmation of existing ratings with a stable outlook indicates no immediate change in credit risk profile, reflecting a balance between the company's established market position, strong order book, and comfortable financial metrics against challenges like working capital intensity and subsidiary losses.
* CRISIL Ratings Limited has reaffirmed the credit ratings assigned to Centum Electronics Limited (CEL) for its total bank loan facilities of INR 399.7 crore (approximately ₹399.7 crore). * The Long Term Rating is reaffirmed as 'CRISIL BBB/Stable'. * The Short Term Rating is reaffirmed as 'CRISIL A3+'. * The ratings reflect the extensive experience of promoters and professional management, an established track record in Strategic Electronics Business Unit (SEBU) and Electronic Manufacturing Solutions (EMS) segments, and a comfortable financial risk profile. * CEL has a healthy order book of ₹1,769 crore as of June 30, 2025, compared to ₹1,674 crore on June 30, 2024. * Financial risk profile is comfortable with interest coverage of 3.07 times and Net Cash Accruals to Total Debt (NCATD) of 20% in FY25. Net worth stood at ₹321.84 crore and gearing at 0.44 times as on March 31, 2025. * These strengths are partially offset by working capital-intensive operations, losses in subsidiary entities for the past four fiscal years ending FY25, and susceptibility to technology changes and customer sourcing policies. * Gross current assets were sizeable at 290 days as on March 31, 2025, due to inventory (139 days) and debtors (99 days). * The outlook on the ratings remains 'Stable', indicating that CEL is expected to continue benefiting from its established market position over the medium term.
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Centum Electronics Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Centum Electronics Limited. Read the original for the full detail.