Raymond's engineering subsidiary receives credit rating amid restructuring

Raymond Limited (BSE: RAYMOND) announced that CARE Ratings has assigned a CARE AA- (RWD) rating to the long-term bank facilities of its subsidiary, JK Files and Engineering Limited (JKFEL). The rating reflects the ongoing strategic realignment within the Raymond Group, specifically the vertical demerger of its real estate business and the subsequent restructuring of its engineering division. The rating agency has placed the ratings on "Rating Watch with Developing Implications," reflecting the anticipated changes. CARE Ratings acknowledged JKFEL's improved operating performance in fiscal year 2025, citing increased demand in the auto components sector and the incorporation of its aerospace business. However, it also noted the company's moderate financial risk profile and exposure to raw material price volatility. As of March 31, 2025, JKFEL's overall gearing stood at 1.78x.