The agency has also upgraded Permanent Magnets? short-term rating to ?ACUITE A3? from 'ACUITE A4+?.

Acuit? Ratings said that the rating has been upgraded considering PML?s sustained improvement in the operating performance along with a healthy financial risk profile.

The financial risk profile is healthy marked by healthy net worth, low gearing and comfortable debt protection metrics.

Further, the debt protection metrics of the company are comfortable with Interest coverage ratio (ICR) and Debt service coverage ratio (DSCR) of 35.41 times and 27.68 times as of 31 March 2023.

The rating further continues to factor in the long standing experience of the management and PML?s established track record of operations. The rating however remains constrained due to intensive working capital operations, high reliance on non-fund-based working capital limits.

Mumbai-based Permanent Magnets is engaged in manufacturing of Alnico (Aluminium, Nickel and Cobalt) Magnets & Magnetic assemblies, parts and accessories of Electricity Meters, Gas Meters and Electrical vehicles.

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