RATING RATIONALE
23Feb2023

Texmo Pipes & Products Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 122.20 Crs. of Texmo Pipes & Products Ltd. based on the best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(24 Nov 2021)
Present
Fund Based 66.20 66.20 Long Term BWR BBB+ /Stable
Upgrade
BWR BBB /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 56.00 56.00 Short Term BWR A2
Upgrade
BWR A3 +
ISSUER NOT COOPERATING* /Downgrade
Grand Total 122.20 122.20 (Rupees One Hundred Twenty Two Crores and Twenty lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

BWR has downgraded the rating to BWR BBB (Stable)/ BWR A3+ and migrated the same to the ISSUER NOT COOPERATING* category.

The rating was last reviewed on 24th November 2021. BWR followed up with the Company for surveillance of its rating, however, no information was received despite continuous follow-ups. BWR took up with the company to provide the required information over several emails since last two months and also on phone calls during the period. The company did not cooperate for a review of the rating for the bank loan facilities of Rs. 122.20 Crs. The company has not provided any information wrt business, management, or /and operation for its review.

Reasons for non- cooperation:

BWR has followed up with the company via email and calls which were not responded by the company. As required minimum, relevant information was not provided by the company reflecting non-cooperation by the issuer. BWR migrated the rating under the ISSUER NOT COOPERATING* category; based on the best available information.
 

Reasons for Downgrade:

BWR is unable to assess the entity's future financial performance and its ability to service its debt obligations and maintain a valid rating. Hence, BWR has downgraded the rating to BWR BBB (Stable)/ BWR A3+ and migrated the same to the ISSUER NOT COOPERATING* category, based on the best available information.


*Issuer did not cooperate, based on the best available information.

LIMITATIONS OF THE RATING

The lenders/investors may note to exercise due caution while using the above ratings which mention “Issuer Not Cooperating” since the ratings lack any projections or a forward-looking component as it is arrived based on the best available information on the company without any management interaction. Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress.
 

ABOUT THE ENTITY

Texmo Pipes & Products Limited (TPPL) is a public limited company and was incorporated on 3rd July 2008. TPPL is engaged in manufacturing of PVC Pipes, UPVC Casing Pipes, Plumbing Pipes, SWR Pipes, HDPE Pipes, Permanently Lubricated Pipes and HDPE Sprinkler Pipes, Moulded Fittings, etc. Manufacturing facility of TPPL is located in Burhanpur, Madhya Pradesh. Mrs. Rashmi Devi Agrawal is the Chairperson & Whole Time Director of the company. Mr. Sanjay Kumar Agrawal is the Managing Director of the company. TPPL is listed on NSE & BSE. TPPL has a wholly owned subsidiary Tapti Pipes and Products Limited FZE, UAE which is debt free and is non-operational.

The company has recorded revenue of Rs.472crs with EBITDA margin of 4.88% and PAT margin of 0.77% in 9M FY23.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

ANY OTHER INFORMATION

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 66.20
BWR BBB/Stable
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
24Nov2021
BWR BBB+ Stable
(Upgrade)
03Feb2020
BWR BBB Stable
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
07Dec2020
BWR BBB Stable
(Reaffirmation)
Non Fund Based ST 56.00
BWR A3+
(ISSUER NOT COOPERATING* /Downgrade)
NA
NA
24Nov2021
BWR A2
(Upgrade)
03Feb2020
BWR A3
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
07Dec2020
BWR A3
(Reaffirmation)
Grand Total 122.20 (Rupees One Hundred Twenty Two Crores and Twenty lakhs Only)
Rating Advisory, as on 25Nov2022
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Sonali Mittal

Rating Analyst sonali.m@brickworkratings.com

Bal Krishna Piparaiya

Principal Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Texmo Pipes & Products Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Bank of Baroda Cash CreditSanctioned 7.00 _ 7.00
2 Bank of Baroda Bank GuaranteeSanctioned _ 7.00 7.00
3 Bank of Baroda Letter of CreditSanctioned _ 10.00 10.00
4 Central Bank of India Letter of CreditSanctioned _ 9.00 9.00
5 Central Bank of India Bank GuaranteeSanctioned _ 5.00 5.00
6 Central Bank of India Cash CreditSanctioned 6.00 _ 6.00
7 Central Bank of India Term LoanSanctioned 1.20 _ 1.20
8 HDFC Bank Term LoanSanctioned 1.10 _ 1.10
9 Punjab National Bank Term LoanSanctioned 18.00 _ 18.00
10 Punjab National Bank Cash CreditSanctioned 7.00 _ 7.00
11 Punjab National Bank Bank GuaranteeSanctioned _ 5.00 5.00
12 Punjab National Bank Letter of CreditSanctioned _ 5.00 5.00
13 Punjab National Bank Term LoanSanctioned 3.50 _ 3.50
14 State Bank Of India (SBI) Common Covid Emergency Line of Credit (CCECL)Sanctioned 2.40 _ 2.40
15 State Bank Of India (SBI) Letter of CreditSanctioned _ 10.00 10.00
16 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 5.00 5.00
17 State Bank Of India (SBI) Cash CreditSanctioned 20.00 _ 20.00
Total 66.20 56.00 122.20
TOTAL (Rupees One Hundred Twenty Two Crores and Twenty lakhs Only)
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