India Ratings Revises P N Gadgil & Sons
Outlook to Positive; Affirms IND-A India Ratings and Research (Ind-Ra) has revised P.N. Gadgil & Sons Limited’s (PNGSL) Outlook to Positive from Stable while affirming Long-Term Issuer Rating at ‘IND A’. The instrument-wise rating action said the Size of Issue of Rs 2,900 mn with Rating Action remark- Affirmed; Outlook revised to Positive from Stable! The Positive Outlook reflects PNGSL's strong month on month recovery in sales post the Covid-19 pandemic; a sharp increase in the EBITDA margins in 1HFY21 partially supported by inventory gains; and the likelihood of an improvement in the company’s net leverage to below 1.5x in FY21 basis higher Year-on-Year (YoY) festive season sales in 3QFY21. The Positive Outlook also reflects the agency’s expectation that the company’s absolute EBITDA would sustain close to INR1,500 million (excluding one-off high inventory gain accrued in 1HFY21) which would help PNGSL to post strong positive cash flow from operations and reduce