HomeBusiness NewsGensol Engineering to cut debt with asset sales amid rating downgrade concerns
Acknowledging the credit rating downgrades by CARE and ICRA, the firm said that it has happened due to a short-term liquidity mismatch which is improving by way of customer payments. The firm denied involvement in “falsification claims” and said it would be setting up a committee to comprehensively review the matter.
By PTI March 5, 2025, 11: 50: 59 PM IST (Published)
Gensol Engineering Ltd (GEL) on Wednesday said proceeds from the series of asset divestments will be used to reduce debt as it looked to address concerns around recent credit rating downgrades.
Acknowledging the credit rating downgrades by CARE and ICRA, the firm said that it has happened due to a short-term liquidity mismatch which is improving by way of customer payments.
“That said, we understand the concerns these downgrades have raised and are committed to addressing them responsibly to all our stakeholders,” it said in a statement.
The firm denied involvement in “falsification claims” and said it would be setting up a committee to comprehensively review the matter. “This underscores the company’s commitment to accountability, transparency and sustainable business practices.” Gensol said it had strong financials with an order book of more than ₹7,000 crore, 42% growth in revenue to ₹1,056 crore in the first nine months of current fiscal, 89% EBITDA growth to ₹246 crore and 34% rise in profit to ₹67 crore.
“These are challenging times, and we are taking decisive steps toward strengthening our financial position and ensuring long-term financial stabil