- Fixed deposit programme Rating: upgraded from FAA to FAA+
- Non-convertible debentures - Rs. 25-crore Rating : AA (reaffirmed)
- Commercial paper programme - Rs. 100-crore Rating : P1+(Reaffirmed)
Crisil has reaffirmed the 'AA' (pronounced 'double A') rating assigned to the Rs. 25-crore non-convertible debenture programme of Dabur India Limited. Crisil has also upgraded the 'FAA' rating assigned to Dabur's fixed deposit programme to 'FAA+', and reaffirmed the 'P1+' (pronounced 'P one plus') rating assigned to Dabur's Rs.100-crore commercial paper programme.
The ratings continue to reflect Dabur India's strong market position in the ayurvedic, health and personal care products market, its sound track record in positioning herbal remedies into successful brands, and its strength in sourcing and distribution. The rating also factors the company's stable financial performance, characterised by stable operating margins, improvement in working capital management, resulting in better cashflows from operations.
The progress made by the company towards restructuring its business portfolio and management structure is likely to result in greater focus and resource availability for Dabur India's core businesses, and this has been favourably factored in the rating, Crisil believes. The performance of the foods division and the quantum of investments in the JVs and subsidiaries of Dabur India, would have a bearing on its future financial performance.