India Ratings (Fitch) Upgrades Shilpi Cable Technologies to ‘IND A-’

Shilpi Cable Technologies Limited (SCTL), a specialist in a wide variety of cables used in telecom, automotive and energy segment, has been assigned a Long-Term Rating of ‘IND A-’ by India Rating and Research (Ind-Ra) better known as Fitch Ratings. The rating ‘IND A-’ indicates adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk.

The key rating drivers that contributed to this rating are the group’s revenue that grew at a CAGR of 82% over FY12 to INR32bn in FY15. The growth was driven by strong revenue growth in both domestic and international operations at a CAGR of 45% and 197%, respectively, over FY12-FY15. The domestic revenue growth was also driven by diversification in product portfolio as well as end-user industries. The group has three operating segments: radio frequency (RF) cables, small diameter non-RF cables and copper conductors, which contributed 24%, 39% and 37%, respectively, to FY15 revenue. Other factors include low customer concentration, comfortable interest coverage, low capex requirements, working capital intensive domestic operations, raw material price fluctuations and international trading operations.

Commenting on this development, Mr. Manish Goel, Managing Director of Shilpi cable Technologies Limited said, “The ‘IND A-’ for long term re-affirms our balance sheet strength & cash flow visibility. All the industries that SCTL is serving are currently going through a very exciting phase, we look forward to capitalizing that. With IND A-, our business outlook looks positive and we look forward to achieving our goal of becoming a billion dollar company by 2020.

With the success of pet projects like Make in India, Digital India, Smart city initiatives it should only give further impetus to growth. What would also push our growth trajectory in the coming years is the current expansion in business, launch of new products and thrust on new growing segments” added Mr. Manish Goel, Managing Direction, Shilpi cable Technologies Limited.

About Shilpi Cable Technologies:

Shilpi Cable Technologies Limited, a separate wing of three decades old Shilpi Group was founded in the year 2006. Starting with a project to manufacture RF cables, Shilpi Cables has become a specialist across the varieties of cables widely used in telecom, automotive and energy segment.

An ISO 9001:2000 certified company Shilpi Cable's success in a very short span is a result of its desire to use best technology, become leader in execution excellence and partner its customer in meeting their evolving needs. Shilpi believes in providing its customers the best quality products at the most reasonable prices. Its organization to organization contact policy, impeccable innovation and technological advancements help it to understand the requirements of its clients and serve them better.