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Aditya Vision Limited (AVL) received an upgrade in its credit rating from CRISIL Ratings. The long-term facilities rating for AVL has been reaffirmed to CRISIL A-/Stable. The enhanced bank facilities now amount to Rs 270 crore, up from the previous Rs 75 crore.
AVL is engaged in retailing of consumer durables and operates through multi-brand retail showrooms, named 'Aditya Vision' across Bihar, Jharkhand and eastern UP.
Net profit of Aditya Vision rose 41.26% to Rs 37.42 crore while net sales rose 46.23% to Rs 641.23 crore in Q1 June 2023 over Q1 June 2022.
As on 30 June 2023, AVL has 117 stores of which 91 stores are in Bihar addressing more than 50% market in the state, 18 stores in Jharkhand and 8 stores in eastern UP. Going forward also company is expected to benefit from underpenetrated markets sustaining its market position.
"The rating reflects extensive experience of the promoter in the electronics retail industry, established market position and sound operating efficiency. These strengths are partially offset by moderate financial risk profile and working capital cycle and exposure to intense competition in consumer durable retailing segment," CRISIL said in a report.
Shares of AVL rose 2.80% to Rs 2472.35 on 31 August 2023.
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