Brickwork Ratings downgrades the long-term ratings & reaffirms the short-term ratings for the Bank Loan Facilities of Rs. 1215.91 Crs. of Nectar Lifesciences Limited based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (30 Aug 2023) |
Present | ||
Fund Based | 858.67 | 858.67 | Long Term |
BWR B /Stable
ISSUER NOT COOPERATING* /Downgrade |
BWR B -
/Stable Continues to be in ISSUER NOT COOPERATING* category/Downgraded |
Non Fund Based | 357.24 | 357.24 | Short Term |
BWR A4
ISSUER NOT COOPERATING* /Downgrade |
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed |
Grand Total | 1215.91 | 1215.91 | (Rupees One Thousand Two Hundred Fifteen Crores and Ninety One lakhs Only) |
Brickwork Ratings (BWR) downgraded long-term ratings to BWR B-/Stable, reaffirmed the short-term rating to A4, and continues the same under the ISSUER NOT COOPERATING* category for the bank loan facilities of Nectar Lifesciences Limited based on the best available information.
The rating was due for annual review on 30 August 2024. Despite continuous follow-ups with the company, it has not complied with the rating surveillance process. BWR has taken the current rating action based on the best available information on the issuers’ performance and under extant regulatory guidelines. The company has not submitted the monthly No Default Statement regularly. Due to the lack of management cooperation and in the absence of adequate information, BWR was unable to assess the Company’s overall performance and its ability to service its debt and maintain a valid rating. Based on the aforementioned factors, Brickwork Ratings downgraded long-term ratings to BWR B-/Stable, reaffirmed the short-term rating to A4, and continued under the ISSUER NOT COOPERATING* category, 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 lacks any projections or forward-looking component as it is arrived at based on the best available information without any management/banker's interaction.
ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA:
For arriving at its ratings, BWR has considered a standalone approach and applied its rating methodology as detailed in the Rating Criteria. (hyperlinks provided at the end of this rationale).
List of subsidiaries:
NECLIFE PT, UNIPESSOAL LDA (“NECLIFE PT”), Wholly owned subsidiary
LIMITATIONS OF THE RATING
Information availability risk is a key factor in assessing credit risk as generally, non-cooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should, therefore, take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of the information required for a review of the rating.
ABOUT THE ENTITYMacro Economic Indicator | Sector | Industry | Basic Industry |
---|---|---|---|
Healthcare | Healthcare | Pharmaceuticals & Biotechnology | Pharmaceuticals |
Nectar Lifesciences Ltd (NLL), a publicly listed company based in Chandigarh, mainly manufactures specialized pharmaceutical intermediates, APIs, phytochemicals (menthol), finished dosage formulations (FDF) along with Empty Hard Gelatin Capsule Shells. NLL was incorporated in 1995 and manufacturers a Cephalosporin range of products in India. NLL is promoted by Mr. Sanjiv Goyal, who has over three decades of experience in the pharma business.
(Information available as of July 2022)
KEY FINANCIAL INDICATORS (Standalone) (Source: BSE)
Key Parameters | Units | FY 22-23 (Audited) |
FY 23-24 (Audited) |
Q2FY25 (Unaudited) |
Operating Revenue | Rs.Crs. | 1524.61 | 1685.63 | 787.4 |
EBITDA | Rs.Crs. | 55.66 | 153.11 | 83.14 |
PAT | Rs.Crs. | -22.46 | 5.00 | 8.57 |
Tangible Net Worth | Rs.Crs. | 1015.27 | 1016.86 | 1027.08 |
Total Debt/Tangible Net Worth | Times | 0.74 | 0.62 | 0.61 |
Current Ratio | Times | 1.38 | 1.32 | 1.31 |
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
Not Applicable
ANY OTHER INFORMATIONNot Available
RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)Facilities | Current Rating (2024) | 2023 | 2022 | 2021 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 858.67 |
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
30Aug2023 |
BWR B Stable
(ISSUER NOT COOPERATING* /Downgrade) |
06Jul2022 |
BWR B+ Stable
(Upgrade) |
12Jul2021 |
BWR D
(Downgrade) |
Non Fund Based | ST | 357.24 |
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
30Aug2023 |
BWR A4
(ISSUER NOT COOPERATING* /Downgrade) |
06Jul2022 |
BWR A4
(Upgrade) |
12Jul2021 |
BWR D
(Downgrade) |
Grand Total | 1215.91 | (Rupees One Thousand Two Hundred Fifteen Crores and Ninety One lakhs Only) |
Analytical Contacts | |
---|---|
KunjalDabhi Ratings Analyst kunjal.d@brickworkratings.com |
Niraj Kumar Rathi Director Ratings niraj.r@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.) | Complexity of the Instrument |
---|---|---|---|---|---|---|
1 | Axis Bank Ltd. | Cash CreditSanctioned | 36.20 | _ | 36.20 | Simple## |
2 | Export Import Bank of India | Term LoanOut-standing | 4.64 | _ | 4.64 | Simple## |
3 | Export Import Bank of India | Working Capital Demand LoanOut-standing | 77.76 | _ | 77.76 | Simple## |
4 | Jammu and Kashmir Bank | Term LoanOut-standing | 105.28 | _ | 105.28 | Simple## |
5 | Jammu and Kashmir Bank | Cash CreditSanctioned | 26.80 | _ | 26.80 | Simple## |
6 | Jammu and Kashmir Bank | Working Capital Demand LoanOut-standing | 13.89 | _ | 13.89 | Simple## |
7 | Jammu and Kashmir Bank | BG/LC/ILCSanctioned | _ | 21.49 | 21.49 | Simple## |
8 | Punjab National Bank | BG/LC/ILCSanctioned | _ | 201.52 | 201.52 | Simple## |
9 | Punjab National Bank | Letter of GuaranteeSanctioned | _ | 10.40 | 10.40 | Simple## |
10 | Punjab National Bank | Cash CreditSanctioned | 247.00 | _ | 247.00 | Simple## |
11 | Punjab National Bank | Working Capital Term LoanSanctioned | 80.65 | _ | 80.65 | Simple## |
12 | State Bank Of India (SBI) | Working Capital Demand LoanOut-standing | 49.45 | _ | 49.45 | Simple## |
13 | State Bank Of India (SBI) | Cash CreditSanctioned | 217.00 | _ | 217.00 | Simple## |
14 | State Bank Of India (SBI) | ILC/FLC/BGSanctioned | _ | 123.83 | 123.83 | Simple## |
Total | 858.67 | 357.24 | 1215.91 | |||
TOTAL (Rupees One Thousand Two Hundred Fifteen Crores and Ninety One 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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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