India’s Crisil Ratings has revised its outlook for Venus Pipes and Tubes Limited (VPTL) from ‘stable’ to ‘positive’, a company statement said on Monday, June 29.
The rating agency has also reaffirmed its Crisil A1 rating on the short-term bank facilities of the company.
The ratings continue to reflect the extensive experience of the promoters in the stainless steel pipes business along with increasing scale of operations, the healthy operating margin and the moderate financial risk profile of the company, Crisil said.
These strengths are partly offset by a large working capital requirement and exposure to risks related to completion of capital expenditure (capex) and ramp-up of scale.
VPTL manufactures stainless steel pipes and tubes used in multiple industries. Located on the Bhuj-Bhachau highway near Dhaneti in Kutch, in the western state of Gujarat, its facility is in close proximity to Kandla and Mundra ports.
The company has a manufacturing capacity of 48,000 mt per year of welded and seamless pipes and tubes and 20,400 mt per year of mother hollow pipes.
