Senvion's Credit Rating Upgraded to BBB (Stable)
India, January, 2025, Senvion has successfully received a BBB (Stable) credit rating from CARE Ratings Ltd. The rating indicates a robust financial discipline, operational resilience, and a dedication to upholding a stable credit profile. CARE Ratings has acknowledged Senvion Wind Turbine Private Limited’s (SWTPL) credit profile, noting an increase in revenue and an improvement in profitability for FY24. Additionally, a significant rise in the order book position is anticipated to propel business growth in the near-to-medium term.
The stable outlook on the CARE BBB rating of SWTPL indicates that the company is expected to gain from its robust order book position, according to CARE Ratings’ assessment. The outlook is supported by the expectation of successful execution of the orderbook and a sustained improvement in operational performance. The rating reflects the company's strong financial health, consistent cash flow, and capability to effectively fulfil its debt obligations. The positive outcome can be attributed to various factors, including revenue performance, operational efficiency, and the risk management framework in place.
Positive Factor:
- Improvement in financial risk profile as reflected by significant improvement in scale and profitability margins on a sustained basis.
- Established track record in WTG manufacturing with experience of 8+ years in the wind segment.
- Healthy order book position providing revenue visibility over near to medium term.
- Strong technical capabilities owing to retention of erstwhile Senvion GmbH’s R&D team in Germany along with presence in India
- The liquidity position of the company is satisfactory.
- CARE Ratings also factors in the execution risks pertaining to the ongoing capex for upgrading one of its existing manufacturing facilities to manufacture 4.2 MW turbines.
The rating not only enhances the Senvion's credibility with financial institutions but also strengthens its position for future financial planning and strategic initiatives. Senvion remains committed to maintaining strong financial discipline while exploring opportunities for further improvement.