The agency has assigned ‘[ICRA] A2+’ rating to the short-term bank facilities of the company.

ICRA stated that the ratings assigned to PTC Industries (PTCIL) factor in the established operational record of the company and experience of its promoters in the niche, specialised metal casting industry, along with its diversified product profile with presence across industries like oil and gas, LNG processing, aerospace, defence, marine, energy and pulp and paper.

Further, the sales are diversified geographically, and exports have generated more than 80% of PTCIL’s revenue since FY2022.

PTCIL, supported by its strong technological capabilities, has developed a reputed client base that includes customers like Rolls Royce Marine, Dassault Aviation, HAL , MoD and Israel Aerospace Industries.

The ratings also factor in PTCIL’s robust financial risk profile supported by healthy OPM and comfortable capitalisation and coverage indicators.

The company has also raised equity of Rs 1,082.3 crore since FY2023, including Rs 675.9 crore (net of issue expenses) through a QIP completed on 03 September 2024. This improved the company’s liquidity profile and net worth position.

The ratings are, however, constrained by the company’s modest scale of operations with a total operating income of Rs 256.9 crore in FY2024 and Rs 119.2 crore in H1 FY2025 and high working capital intensity of the business owing to high inventory and receivable days.

Given that PTCIL’s raw materials costs are essentially driven by commodity prices, its profitability also remains exposed to the volatility in the prices of its raw material.

However, the risk is mitigated to an extent with the company following a dynamic pricing strategy to address fluctuations in raw material costs.

PTC Industries is one of the leading manufacturers in the engineering sector catering to the aerospace, defence, oil and gas, power and marine industries. It offers castings and comprehensive design support for varied range products of critical and super-critical applications

The scrip rose 1.39% to currently trade at Rs 17565 on the BSE.