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BAL Pharma, a fully integrated pharmaceutical company specialized in Bulk Actives, Prescription Drugs, Generics and pharma intermediates, has announced that the leading credit rating agency, Acuite Ratings & Research has upgraded its ratings. The ratings for Long Term Fund based facilities and Long term-Term Loan facilities have been upgraded to 'BBB- from BB+' indicating 'Stable' outlook, for the Company.
Rating as assigned
Improved Business Performance
The rating from BB+(ICRA) to BBB- has been improved based on the sound business performance of the Company. It is enhancing its business segments and maintaining strong momentum, especially the API's business, which has been driving the overall growth. Bal Pharma registered 16% YoY revenue growth for 9MFY22. This was on account of the robust demand both in the domestic and the international markets. Various APIs such as Gliclazide, Ebastine, and Benzydamine have witnessed strong growth momentum. The Company has also introduced 10+ new Formulation products in Asia and Africa, which will further diversify its geographical presence. Further, Bal Pharma has been continuously focussing on improving its International and Domestic market share in API and Formulation. To scale up the operations, the Company has been planning to incur CAPEX for expanding the facilities, which will now coincide with the PLI Scheme.
PLI Scheme: a shot-in-the-arm for Future growth
The Company is also a beneficiary of the Production Linked Incentive (PLI) scheme 2.0. for the Pharmaceutical Sector under 'Atmanirbhar Bharat'. It has been placed under 'Category C' of the said scheme wherein Bal Pharma is eligible for incentives to the tune of INR 500 mn spread over the next 5 years with an incremental annual average turnover of INR 1,250 mn from eligible products in both API and Formulation segments. This target of incremental turnover coincides with the Company's growth plans with no additional capex (over and above the capex planned), such incentives are expected to directly flow into the Company's profits.
Rating as assigned
| Instrument | Rating Type | Current Rating | Historical Rating | Outlook |
| Long Term Fund based facilities | Long term | IND BBB- | IND BB+ | Stable |
| Short Term Non Fund based facilities | Short term | IND A3 | IND A4+ | - |
| Long term- Term Loan | Long term | IND BBB- | IND BB+ | Stable |
The rating from BB+(ICRA) to BBB- has been improved based on the sound business performance of the Company. It is enhancing its business segments and maintaining strong momentum, especially the API's business, which has been driving the overall growth. Bal Pharma registered 16% YoY revenue growth for 9MFY22. This was on account of the robust demand both in the domestic and the international markets. Various APIs such as Gliclazide, Ebastine, and Benzydamine have witnessed strong growth momentum. The Company has also introduced 10+ new Formulation products in Asia and Africa, which will further diversify its geographical presence. Further, Bal Pharma has been continuously focussing on improving its International and Domestic market share in API and Formulation. To scale up the operations, the Company has been planning to incur CAPEX for expanding the facilities, which will now coincide with the PLI Scheme.
PLI Scheme: a shot-in-the-arm for Future growth
The Company is also a beneficiary of the Production Linked Incentive (PLI) scheme 2.0. for the Pharmaceutical Sector under 'Atmanirbhar Bharat'. It has been placed under 'Category C' of the said scheme wherein Bal Pharma is eligible for incentives to the tune of INR 500 mn spread over the next 5 years with an incremental annual average turnover of INR 1,250 mn from eligible products in both API and Formulation segments. This target of incremental turnover coincides with the Company's growth plans with no additional capex (over and above the capex planned), such incentives are expected to directly flow into the Company's profits.