P1 plus for USV

A P1 plus rating has been assigned to the Rs. 30 crore commercial paper programme of USV by Crisil. The rating factors in the company's strong position in the high growth diabetology and cardiovascular segments of the domestic formulations market supported by a wide product range and few strong brands which enjoy dominant position in their respective categories. Also, the well established franchise spanning over a decade has helped the company in weathering the increasing competition in these high growth speciality segments. The company has created a strong R&D infrastructure for bio-technology, drug delivery and chemical synthesis.

Coupled with the favourable business profile, a strong financial profile characterised by low gearing, high interest coverage and moderately high operating margins provide significant support to the company's overall credit profile. Notwithstanding these strengths, the company's limited presence in other therapeutic segments such as vitamins, anti-infectives and gastroenterology moderates its business risk profile. The company's future growth would be driven by new product introductions, small brands/company acquisitions and expansion of its international bulk actives business. Given steady cash accruals from strong well established brands, the company's short term liquidity position is expected to remain favourable.

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Section  : Business
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