India Ratings said that the ‘positive' outlook reflects its expectation of an improvement in the consolidated business profile post the completion of Phase-1 of the planned capex in a phased manner from Q4 FY24 and full commissioning of the same by September 2024, which would improve the scale of the operations meaningfully.

Furthermore, India Ratings expects the margins, which were impacted by global destocking of agro-chemicals in Q1 FY24, to start improving from Q3 FY24, when the capex on streaming would also come, thereby benefitting the company.

Additionally, for the first round of capex, the company intends to take only minimal debt as it has internal accruals in place.

Furthermore, the liquidity is supported by the proceeds from the rights issue done during FY23, to support its working capital needs; this would keep the credit metrics comfortable over the short-to-medium term.

Bhagiradha Chemicals & Industries (BCIL) is engaged in the manufacturing of agrochemicals such as pesticides, insecticides, and herbicides. BCIL has a facility of 3,250MT at Prakasam (Andhra Pradesh). Furthermore, the company is setting up a 9,000T AI manufacturing facility at Kadechur industrial area (Yadgir, Karnataka), under its subsidiary, Bheema Fine Chemicals.

The scrip tumbled 4.58% to currently trade at Rs 1203.05 on the BSE.