Sarda Metals & Alloys Ltd (SMAL), a wholly owned subsidiary of Sarda Energy & Minerals Ltd (SEML), has received an improved credit rating outlook from CRISIL, reflecting its strengthened financial and operational profile.
Credit Rating Update
CRISIL reaffirmed SMAL’s long-term and short-term credit ratings while revising the outlook on long-term facilities from “Stable” to “Positive.”
| Rating Type | Previous Rating | Updated Rating |
| Long-term Rating | CRISIL A / Stable | CRISIL A / Positive |
| Short-term Rating | CRISIL A1 | CRISIL A1 (Reaffirmed) |
| Total Rated Bank Facilities | — | ₹659.81 crore |
The improved outlook indicates that CRISIL expects continued financial improvement and a possible upgrade in the future if performance metrics remain strong.
Key Implications
The revised outlook suggests:
- Enhanced financial stability driven by consistent earnings and prudent capital management.
- Improved business visibility and operational efficiency in ferro alloy production.
- Strengthened market position supported by the parent company’s integrated operations.
The update could enable SMAL to secure better borrowing terms and lower financing costs going forward.
About the Parent Company: Sarda Energy & Minerals Ltd (SEML)
Founded in 1973, SEML is a diversified energy and metals enterprise engaged in steel manufacturing, ferro alloys, and power generation.
Operational Highlights:
- Thermal Power Capacity: 761.5 MW
- Hydropower Capacity: 167 MW
- Manufacturing Units: Raipur and Vizag
- Core Products: Long steel products, ferro alloys, and power generation
The company operates iron ore and coal mines in Chhattisgarh, supporting its integrated business model across mining, metals, and energy.
Summary
CRISIL has reaffirmed Sarda Metals & Alloys Ltd’s credit ratings at CRISIL A (Positive) for long-term and CRISIL A1 for short-term facilities, upgrading the outlook from “Stable” to “Positive.” The change reflects improving financial performance, robust business prospects, and a strong backing from parent company Sarda Energy & Minerals Ltd.
Disclaimer:
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