Company Background:
Manufacturer of stainless steel products including sheets, pipes, tubes, coils, circles, and utensils, serving various industries like power plants, oil & gas, and kitchenware.
Problem:
The financials for FY 23 posed a threat to the company’s A- stable rating, potentially leading to a downgrade and higher interest rates. This risk stemmed from increased debt incurred for capital expenditures.
Solution:
Showcased industry decline via peer comparisons, underscored the advantages of recent capital expenditures, and forecasted performance enhancements in new segments, ensuring adequate liquidity for future repayments.
Impact:
Secured a favorable outcome, enabling a focused approach on the timely completion of capital expenditure projects and reducing interest expenses associated with loans taken for these investments. This positions the company for improved business growth in the near term.
