Mumbai, March 20 -- The agency has, however, reaffirmed the short-term rating on the said facilities at 'Crisil A1'.

Crisil Ratings stated that the rating downgrade reflects the longer than expected recovery in the business risk profile marked by lower-than-expected profitability in fiscal 2024 which is likely to stay low in fiscal 2025 as well.

As against Crisil's earlier expectations of nearly 4-5% operating profitability in FY25, the company has reported 1.6% EBITDA margins in 9M FY25 on account of lower-than expected ramp up in boards and panel (B&P) segment which led to lower fixed cost absorption and execution of low margin pre-engineered building (PEB) contracts.

Although the topline is expected to improve in line with Crisil's ...