RATING RATIONALE
08Apr2025

HIL (India) Ltd. (erstwhile Hindustan Insecticides Ltd.)

Brickwork Ratings withdraws the long-term rating, and reaffirms the short-term ratings, removes from the Issuer Not Cooperating category, and simultaneously withdraws the short-term ratings for the Bank Loan Facilities of Rs. 25.00 Crs. of HIL (India) Ltd. (erstwhile Hindustan Insecticides Ltd.)

Particulars
Facilities/Instruments** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(13 Mar 2024)
Present
Fund Based 250.00 0.00 Long Term BWR B+ /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Withdrawal
Non Fund Based 50.00 25.00 Short Term BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
BWR A4
removal from ISSUER NOT COOPERATING* category/Reaffirmed and Withdrawn
Grand Total 300.00 25.00 (Rupees Twenty Five Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Complete details of Bank facilities / NCDs is provided in Annexure-I

RATING ACTION / OUTLOOK / WITHDRAWAL

Brickwork Ratings (BWR) had last rated the bank loan facilities of Rs. 300 Crs on 13 March 2024 by downgrading the long-term rating to BWR B+/Stable/A4 under the ISSUER NOT COOPERATING* category. Based on the company’s request for bank loan rating withdrawal, receipt of No objection certificate from banker, availability of the financial and other operational information, receipt of banker’s feedback, and submission of the latest NDS for the last three months, BWR reaffirms, removes the ratings from the Issuer Not Cooperating category and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 25.00 Crs. of HIL (India) Ltd with immediate effect.

KEY COVENANTS OF THE INSTRUMENT / FACILITY RATED

The terms of the sanction include standard covenants normally stipulated for such facilities.


KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA - Standalone

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria below.

RATING SENSITIVITIES

The ratings of the company are sensitive to improvement in its revenues, gross and net profit margins, and working capital cycle besides improvement in other financial parameters.

Positive: The ratings may be upgraded if the company is able to significantly improve its revenues, net worth, debt protection metrics, and overall gearing coupled with the improvement in other financial parameters.

Negative: The ratings may be downgraded if there is any fall in the company's revenue and earnings and large variations in the audited financials v/s projected financials.

LIQUIDITY INDICATORS - Adequate

The net cash accrual is Rs. 6.20 cr in FY24. The company has no CPLTD in FY24. The current ratio remains comfortable at 2.44 times. The tangible networth of the company is Rs. 55.81 cr. Further, the cash and bank balance is Rs. 118.42 cr. The conversion cycle stood at 576 days. 

COMPANY's / FIRM's PROFILE
Macro Economic Indicator Sector Industry Basic Industry
Commodities Chemicals Fertilizers & Agrochemicals Pesticides & Agrochemicals

HIL (INDIA) LTD formerly known as Hindustan Insecticide Limited is a Government of India Enterprise. The Company is under the administrative control of the Department of Chemicals and Petrochemicals, under Ministry of Chemicals and Fertilizers. HIL is the only manufacturer of Dichlorodiphenyltrichloroethane (DDT) and also the only central public sector enterprises (CPSE) operating in the Public Health and Crop Protection segments in India. The company has gradually diversified into agrochemicals and is presently the sole public sector enterprise in the pesticides field. The product range of the company includes Insecticides, Herbicides, Weedicides and Fungicides etc. The company exports its agro-products to Netherlands, UK, Jamaica, UAE, Manila, South Korea, Belgium, Guatemala, France, Germany, Argentina, Ethiopia, Egypt, Spain, etc. and its products are well-accepted internationally. HIL has a reputed clientele viz., Ministry of Chemicals & Fertilizers, Ministry of Health & Family Welfare, Ministry of Agriculture, Steel Authority of India Limited, Indian Oil Corporation, Bharat Electronics Limited., Coal India Limited, Haryana Tourism, etc.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21 - 22
(Audited - Annual)
FY 22 - 23
(Audited - Annual)
FY 23 - 24
(Audited - Annual)
Operating Revenue Rs.Crs. 354.40 200.55 197.55
EBITDA Rs.Crs. -50.40 -36.44 -67.52
PAT Rs.Crs. 2.21 -68.70 4.50
Tangible Net Worth Rs.Crs. 118.23 50.54 55.81
Total Debt / Tangible Net Worth Times 1.86 4.67 7.15
Current Ratio Times 1.40 1.09 2.44
NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY(IF ANY)

Not Applicable

RATING HISTORY FOR THE PREVIOUS THREE YEARS(including withdrawal and suspended)
Name of Instrument (NCD/Bank Loan /Non- Fund Based facilitates/ Commercial Paper etc.) Current Rating  (2025) 2024 2023 2022
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 0.00
Withdrawal
13Mar2024
BWR B+ Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
09Mar2023
BWR BB-Stable
(Downgrade/ISSUER NOT COOPERATING*)
18Feb2022
BWR BB Stable
(Upgrade)
Non Fund Based ST 25.00
BWR A4
(removal from ISSUER NOT COOPERATING* category/Reaffirmed and Withdrawn)
13Mar2024
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
09Mar2023
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
18Feb2022
BWR A4
(Upgrade)
Grand Total 25.00 (Rupees Twenty Five Crores Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Sejal Santosh Jaiswal

Ratings Analyst sejal.sj@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
HIL (India) Ltd. (erstwhile Hindustan Insecticides Ltd.)
ANNEXURE-I
Details of Bank Loan 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.) Complexity of the Instrument
1 Union Bank of India Term LoanSanctioned _ _ 0.00 Simple##
2 Union Bank of India Cash CreditSanctioned _ _ 0.00 Simple##
3 Union Bank of India Letter of CreditSanctioned _ 25.00 25.00 Simple##
Total 0.00 25.00 25.00
TOTAL (Rupees Twenty Five Crores 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.

ANNEXURE-II
INSTRUMENT(NCD/Bonds/CP/FDs) DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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