Fitch Ratings has affirmed Hayleys PLC’s National Long-Term Rating of ‘AAA(lka)’. The Outlook is Stable. Fitch has also affirmed the company’s outstanding Rs. 3 billion senior unsecured debentures.
Hayleys’ rating reflects its large operating scale and diversification across several prominent businesses. Its significant export earnings drive sustainable operating cash flow, despite temporary challenges in some segments.
We forecast the company’s financial profile to remain commensurate with its rating over the next two years.
Revenue to Rise: We expect revenue to rise by about 7% in the financial year ending March 2025 (FY25), following a 10% decline in the prior financial year. This will be supported by the defensive segments, such as hand protection, agriculture and purification, which account for 28% of revenue. Up to 70% of purification segment revenue is from water purification and gold mining, with demand for both increasing due to the scarcity of drinking water and for gold as a safe haven.
Furthermore, a recovering domestic economy is reviving construction, tourism and retail demand, which bodes well for the construction material, leisure and consumer and retail segments, which comprise 22% of revenue. Cost reflective energy pricing will continue to drive demand for renewable energy sources, supporting the projects and engineering segment, at 5% of revenue.
