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.
ParticularsFacilities** | 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) |
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.
The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.
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.
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.
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
NA
ANY OTHER INFORMATIONNA
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) |
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 CriteriaAnalytical 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 |
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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