Crisil Ratings stated that the revision in outlook reflects expected improvement in business risk profile backed strong revenue growth; healthy profitability and enhanced manufacturing capacities.
The outlook also reflects a an improved financial risk profile on account of increase in equity through Rs 250 crore of private placement and Rs 250 crore of primary issuance from total initial public offering (IPO) of Rs 500 crore.
With this, the overall networth is expected to increase from Rs 114 crore in fiscal 2024 to Rs 700 crore by end of the current fiscal. Sustained improvement in the business risk profile, especially improvement in revenue and order book, while maintaining a healthy operating margin and working capital parameters, is monitorable.
The rating continues to reflect the group's established market position, extensive experience of the promoters in the aerospace and defence industry, strong product portfolio and healthy financial risk profile.
These strengths are partially offset by exposure to cyclicality in end-user industries, customer concentration and large working capital requirement.
Unimech Aerospace and Manufacturing (UAML) manufactures aero tooling, complex precision components and mechanical assemblies for companies in the aerospace, defence, power generation and semiconductor sectors, including several aerospace and power generation original equipment manufacturers (OEMs).
The company's consolidated net profit declined 23.60% to Rs 15.57 crore on a 16.72% fall in sales to Rs 53.90 crore in Q3 FY25 as compared with Q3 FY24.
The scrip rose 0.61% to currently trade at Rs 913.65 on the BSE.