India Ratings Upgrades DCW to 'IND A'/Stable

Significant improvement in credit metrics due to strong profitability and debt refinancing, including refinancing INR 3.3 billion of NCDs through bank loans at a significantly lower interest rate and converting INR 0.3 billion of OCDs into equity.5.

Pursuant to Regulation 30(6) read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''the Regulation''), DCW wishes to inform that India Ratings & Research Private Limited (''Credit Rating Agency'') on March 15, 2023, has upgraded ratings for the financial facilities of DCW Limited (''the Company'') from 'IND A-' to 'IND A'. The details of the revision in instrument-wise ratings for the financial facilities of the Company are as follows: Financial Facilities Amount (million) Revised Rating / Outlook Rating Action Non-convertible debentures (NCDs) INR 3,500 Withdrawn Withdrawn (paid in full) Optionally convertible debentures (OCDs) INR 600 Withdrawn Withdrawn (paid in full) Term Loan INR 5,330 IND A/Stable Upgraded Fund-based working capital limits INR 115 IND A/Stable/IND A1 Upgraded Non-fund-based working capital limits INR 3,428 IND A1 Upgraded Commenting on this development, Mr. Vivek Jain, Managing Director, DCW Ltd, said, ''We are thrilled to see our credit rating upgraded due to our strong performance in both our commodity and specialty businesses. We have significantly improved our credit metrics due to strong profitability and debt refinancing. This is a testament to the hard work and dedication of our team at DCW Limited, and we remain committed to delivering value for our stakeholders. This is also the Company's best Credit Rating over the foreseeable past. Going forward, I expect our EBITDA to keep improving due to increased Capacity utilization across segments and our growing footprints into the specialty business.'' This upgrade reflects the Company's strong financial performance and commitment to maintaining exacting standards. DCW Limited's credit rating has been upgraded due to several key reasons, as stated by the Credit Rating Agency: 1. Robust performance in both its commodity and specialty businesses.

2. India Ratings and Research (Ind-Ra) believes that DCW's EBITDA will likely hit a historical high in FY23 due to solid realizations and an increase in utilization due to customer tie-ups in the specialty business.

3. Demand for PVC/CPVC products remains robust due to the government's focus on growth in irrigation, affordable housing, and infrastructure projects.

4. Significant improvement in credit metrics due to strong profitability and debt refinancing, including refinancing INR 3.3 billion of NCDs through bank loans at a significantly lower interest rate and converting INR 0.3 billion of OCDs into equity.

5. Reduction of net debt (including acceptances) to INR 5.2 billion at the end of December due to robust performance and shoring up its working capital to INR 1.2 billion at the end of September 2022 to optimize its supply chain.

6. Refinancing and reducing interest-bearing customer advances and external inter-corporate deposits have significantly reduced interest costs and improved its credit metrics, with the net leverage expected to remain below 1.5x.

To read the complete ratings upgrade rationale, download the full report from India Ratings from https://www.indiaratings.co.in/pressrelease/61255.

About DCW DCW is a specialty chemicals company manufacturing PVC, C-PVC (chlorinated polyvinyl chloride), Caustic Soda, Soda Ash, and Synthetic Iron Oxide Pigment (SIOP). The Company is the only domestic manufacturer of C-PVC, a versatile thermoplastic used mainly for manufacturing hot and cold-water pipes, industrial liquid handling, and a wide range of products serving a variety of applications. DCW's Caustic Soda, SIOP, and PVC Units are in close proximity to the Tuticorin Port in Tamil Nadu, giving the Company a competitive edge over its peers in exporting its products to global markets.

For more information, please visit www.dcwltd.com

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