India Ratings and Research (Ind-Ra) has assigned Simplex Castings (SCL) a Long-Term Issuer Rating of 'IND BBB-'. The outlook is stable.

SCL caters to various sectors which include railways, steel, and capital goods among others. This helps it to gain traction with reputed companies including Steel Authority of India (IND AAA/Negative), Bharat Heavy Electrical (IND AAA/Stable), National Aluminium Company ('IND AAA/Stable), and Caterpillar India (IND AAA/Stable).

SCL has a strong order book of around Rs 1.5 billion which includes fresh orders worth Rs 640 million from Diesel Locomotive Works which is owned by Indian Railways and Jindal Rail Infrastructure.

SCL's revenue increased to Rs 1,699 million in FY15 (FY14: Rs 1,588 million). In 1HFY16, SCPL achieved revenue of Rs 952.70 million (1HFY15: Rs 816.56 million). The agency expects positive revenue growth to continue in FY16 on account of the strong order book. Prior to FY15, SCL’s revenue declined in FY13 and FY14 due to low demand for casting products in the domestic market.

The agency expects SCL's operating performance to improve in FY16 on account of the strong order book. EBITDA margins during 1QFY16 and 2QFY16 were weak, but the agency expects margins to improve in the 4QFY16 on account of addition of repetitive work orders.

Shares of the company gained Rs 7.85, or 9.5%, to trade at Rs 90.50. The total volume of shares traded was 24,599 at the BSE (2.17 p.m., Wednesday).