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DCW Ltd. Capital/Financing Update 2022
63614_rns_2022-03-16_bb414a6b-9b53-4ee7-80ee-c9edb245a30a.pdf
Capital/Financing Update
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| DCW | |||
|---|---|---|---|
| LIMITED | March 16, 2022 | ||
| To, | |||
| National Stock Exchange of India Ltd. Exchange Plaza Bldg. 5th Floor, Plot No.C-1 'G' Block, Near Wockhardt, Bandra Kurla Complex, Mumbai 400 051 Fax:26598237 /38 Symbol: DCW |
The BSE Limited Department of Corporate Services, 1s floor, New Trading Ring Rotunda Building, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 Fax : 22723121/3719/2037/ 2039 Scrip Code 500117 : |
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| Dear Sir(s)/ Madam, Sub: Press Release - DCW Limited's |
Credit Ratings upgraded by India |
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| Ratings & Research | |||
| Pursuant to the Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, enclosed herewith is a copy of the Press Release to be distributed to the media, contents of which are self-explanatory. |
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| This intimation is also being uploaded on the Company's website at www.dcwltd.com. |
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| You are requested to kindly take the same on record & oblige. | |||
| Thanking You, | |||
| Yours faithfully, | |||
| For DCW Limited General Manager (Legal) & Company Secretary Sr Membership No. ACS-22527 |
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Sub: Press Release - DCW Limited's Credit Ratings upgraded by India Ratings & Research
DCW LIMITED
HEAD OFFICE : "NIRMAL" 3RD FLOOR, NARIMAN POINT, MUMBAI-400 021. TEL.: 2287 1914, 2287 1916, 2202 0743 TELEFAX: 22 2202 8838 REGISTERED OFFICE ; DHRANGADHRA - 363 315 (GUJRAT STATE) Email: [email protected], Website: www.dcwltd.com, CIN-L24110GJ1939PLC00074€
DCW LIMITED
CIN: L24110GJ1939PLC000748 Regd. Office: Dhrangadhra - 363 315, Gujarat Head Office: 3" Floor, Nirmal, Nariman Point, Mumbai - 400021 Tel: 022-22871914 Fax: 022-22028839 Website: www.dcwltd.com E-Mail: [email protected]; [email protected]
PRESS RELEASE
DCW Limited Credit Ratings upgraded by India Ratings & Research
| pcw DCW LIMITED CIN: L24110GJ1939PLC000748 Regd. Office: Dhrangadhra - 363 315, Gujarat Head Office: 3" Floor, Nirmal, Nariman Point, Mumbai - 400021 Tel: 022-22871914 Fax: 022-22028839 Website: www.dcwltd.com E-Mail: [email protected]; [email protected] PRESS RELEASE |
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| DCW Limited Credit Ratings upgraded by India Ratings & Research Mumbai, Wednesday, 15 March 2022: DCW Limited ("the Company" or "DCW"), a specialty chemicals company headquartered in Mumbai, today announced that leading credit rating agency, India Ratings & Research, has upgraded and assigned ratings 'A-' indicating 'Stable' outlook for the Company. |
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| Instrument Type | Size of Issue (million) | Rating/Outlook | Rating Action | ||
| Non-convertible debentures (NCDs) |
INR 3,500 | IND A-/Stable | Upgraded | ||
| Optionally convertible debentures (OCDs) |
INR 600 | IND A-/Stable | Upgraded | ||
| Term loan | INR 1,386 | IND A-/Stable | Upgraded | ||
| Fund-based working capital limits |
INR 115 | IND A-/Stable/IND A2+ | Upgraded | ||
| Non-fund-based working ine 9 949 capital limits |
IND A2+ | Upgraded |
Key Rating Drivers: The rating upgrade by the agency was based on the following parameters
- a) Rise in Share of Speciality Chemicals Segment: Specialty chemicals contributed approximately 26-30 % to the company's EBITDA in SMFY22 (FY21: 29%, FY20: 18%, FY19: 5%).
- b) Diversified Product mix aiding the company in overall improvement of performance in 9MFY22 over FY21 and FY20
- c) Continued improvement in credit ratios: The interest coverage (EBITDA/gross interest expense) improved to 2.6x in 9MFY22 (FY21: 1.7x, FY20: 1.4x) and the net leverage (net debt/EBITDA) to 1.7x in 1HFY22 (2.4x, 3.8x) on account of the healthy profitability and substantial cash accruals.
- d) Healthy improvement in other segments of the business like PVC and Caustic Soda in QMFY22
Commenting on the rating, Mr Vivek Jain, Managing Director, DCW Ltd., said, "The rating upgrade by the India Ratings and Research is based on their long-term review of our financial results and our business strategy around growth and diversification. The upgradation from BBB+ to A-, in such an agile environment, reflects the confidence in the company's business model and execution capabilities.
During 9MFY22, company's C-PVC, SIOP, PVC and the Caustic soda segment have reported substantial growth. DCW's contribution from Speciality Chemical has been increasing consistently, giving immense confidence. We remain focused on driving our performance and are well-positioned for growth.
About DCW
DCW is a specialty chemical manufacturing PVC, C-PVC (chlorinated polyvinyl chloride), Caustic Soda, Soda Ash, and Synthetic lron Oxide Pigment (SIOP). The Company is the only domestic manufacturer of C-PVC, a versatile thermoplastic used mainly for manufacturing hot and cold-water pipes, industrial liquid handling, and a wide range of products serving a variety of applications. DCW's Caustic Soda, SIOP and PVC Units are in close proximity to the Tuticorin Port in Tamil Nadu, giving the Company a competitive edge over its peers to export its products to global markets.
For more information, please contact:
Mr. Dilip Darji Chintan Mehta Sr.General Manager (Legal) & Company Secretary Dickenson World DCW Limited Mob: +91 9892183389 Landline: +91 22 22871914/16 [email protected] [email protected]
Safe Harbour: This document may contain forward-looking statements about the Company, which are based on the beliefs, opinions, and expectations of the Company's management as the date of this press release and the companies do not assume any obligation to update their forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change, These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Consequently, readers should not place any undue reliance on such forwardlooking statements.