Keerthi Industries Ltd

📉📈 Keerthi Industries: CARE Ratings Holds 'B; Stable' Amid Financial Challenges & Potential Upside

- CARE Ratings reaffirms 'CARE B; Stable' for ₹30.26cr long-term bank facilities.

- FY25 performance decline: Capacity utilization fell to 43% (from 73% in FY24), revenue dropped 44% to ₹119.88cr.

- Operating loss of ₹17.41cr and net loss of ₹22.77cr in FY25; marginal H1FY26 improvement.

- Stretched liquidity: Negative gross cash accruals of ₹21.59cr vs. ₹6.74cr debt repayment due in FY26.

- Promoters infused ₹26.54cr in unsecured loans (quasi-equity) to support debt obligations.

- Challenges: Regional sales concentration (AP & Telangana), input price volatility, cement industry cyclicality.

- Strengths: Experienced promoters, captive limestone mines, integrated operations.

- Positive triggers: Operating income above ₹200cr & PBILDT margin at 10% could improve rating.

- Risks: Gearing exceeding 1x or >30% YoY decline in operating income/profitability.

- Stable outlook hinges on operational recovery & electronics division sale easing liquidity.