CRISIL upgrades the Credit Rating of KARAM GROUP

The upgrade reflects the improvement in the business risk profile of the group driven by higher revenue in fiscal 2022 backed by enhanced demand from the exports market, introduction of new products under health care segment and increased revenue composition under own brand.

The company has achieved this upgrade after 3 years of sustained improvement in all financial and business metrics. The upgrade reflects the improvement in the business risk profile of the group driven by higher revenue in fiscal 2022 backed by enhanced demand from the export market, introduction of new products under the health care segment, and increased revenue composition under its brand. The group also has a strong presence as an original equipment manufacturer supplier to numerous safety brands; both in India and abroad. The group has a strong market position and diversified endues industry base (safety and industrial; health care and retail). It has established itself as one of the leading manufacturers of personal safety and fall protection safety equipment with strong brand recall.

Despite sluggish demand and lockdown restrictions during the first quarter, revenue posted a 50% year-on-year growth and is expected more than Rs 700 crore in fiscal 2022. Operating margin, at 23.0-24.0% in fiscal 2022, is expected at similar levels in fiscal 2023 and 2024, backed by better capacity utilization and backward integration of operations. The ratings continue to reflect the robust market position of the group and the extensive experience of its promoters in the safety equipment segment. Across India, only 5-10% of companies fall under this category.

Speaking on the same, Mr. Hemant Sapra (President, Global Marketing) at KARAM Safety Pvt. Ltd. said, ''All the employees and entities of KARAM Group are excited about the CRISIL Rating upgrades. This will enhance our company's credibility and widen our audiences, it is an important step in our growth & diversification. It reflects our continuous hard work, dedication, and better than expected operating performance. We want to keep up the momentum and continue working towards achieving such milestones in the future.'' The Long Term rating of CRISIL A represents that investment in Group is considered to have an adequate degree of safety, it includes timely servicing of financial obligations with low credit risk in the Long term. The Short Term rating of CRISIL A1 represents that Investment in Group is considered to have a strong degree of safety regarding timely servicing of financial obligations with the lowest credit risk in the Short Term.

Rating Trend of last 4 years: Particulars 2018 2019 2022 KSPL - Long Term CRISIL BBB+ CRISIL A-/Stable CRISIL A/Stable KSPL - Short Term CRISIL A2+ CRISIL A2+ CRISIL A1 PNI - Long Term CRISIL BBB+ CRISIL A-/Stable CRISIL A/Stable PNI - Short Term CRISIL A2+ CRISIL A2+ CRISIL A1 *There was no change in rating in 2020 and 2021 About KARAM Group: KARAM is India's one of the leading Personal Protective Equipment Manufacturing enterprises, ranks as the number one company in the field of Personal Safety in the country, and among one of the top ten Fall Protection manufacturing companies in the World. Its product range includes Personal Protective Equipment like safety helmets, safety eyewear, hearing protection, face protection, hand protection, protective workwear, safety shoes, and a vast range of Fall Protection Equipment. Besides these, engineered safety solutions like anchorage systems, specialized rope access, evacuation and rescue products, and confined space entry egress systems also form a part of KARAM's Product Portfolio. KARAM Training and Consultancy is a specialized wing created for providing training and safety consultancy in the field of work-at-height in India.

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