ICRA has upgraded the long-term rating of Go Fashion to ‘[ICRA] A' from ‘[ICRA] A-'. It has also upgraded the short- term rating to '[ICRA] A1' from '[ICRA] A2+'.

Offering the rating rationale, ICRA stated that the ratings upgrade reflects steady improvement in the performance of Go Fashion India (GFIL) over the medium term, backed by its strong market position in the domestic women's bottom wear segment.

GFIL has a healthy financial profile, characterised by strong capitalisation levels and liquidity position, further strengthened by the equity infusion of Rs 125 crore made through the initial public offering (IPO) in November 2021.

Post the pandemic-induced business disruptions in FY2021, GFIL's business performance improved in the current fiscal, driven by its established brand and better demand conditions (registering around 77% YoY revenue growth in 9M FY2022).

ICRA expects GFIL's revenue to witness a 10% CAGR over the medium term, driven by steady demand and continued diversification measures with around 120 exclusive brand outlets (EBOs) proposed to be added every year in the coming fiscals.

GFIL's financial profile remains comfortable, backed by its steady earnings from operations, which has been utilised towards meeting working capital requirements with low dependence on external debt.

GFIL is involved in the retailing of women's bottom wear products under its brand, Go Colors. The company's consolidated net profit rose 33.4% to Rs 23.69 crore on 46.6% rise in net sales to Rs 142 crore in Q3 December 2021 over Q3 December 2020.

Shares of Go Fashion India fell 0.14% to end at Rs 996 on BSE yesterday, 8 April 2022.