Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 7.50 Crs. of Geberit Electronics Pvt. Ltd.
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (11 Jun 2021) |
Present | ||
Fund Based | 3.00 | 1.50 | Long Term |
BWR B+ Stable
Reaffirmation/ISSUER NOT COOPERATING* |
BWR B +
/Stable Reaffirmation |
Non Fund Based | 12.00 | 6.00 | Short Term |
BWR A4
Reaffirmation/ISSUER NOT COOPERATING* |
BWR A4
Reaffirmation |
Grand Total | 15.00 | 7.50 | (Rupees Seven Crores and Fifty lakhs Only) |
BWR reaffirmed the long term rating of BWR B+ Stable and Short Term Rating of BWR A4 for Geberit Electronics Private Limited.
The rating draws strength from the rich experienced promoters and long track record of the company and moderate scale of operations. The rating of the company is constrained by low profitability margins and low interest service coverage ratio along with competition from various organised and unorganised players.
BWR believes that the business risk profile of “Geberit Electronics Private Limited.” will be maintained over the medium term. The Stable outlook indicates a low likelihood of rating change over the medium term. The Rating outlook may be revised to “Positive” in case there is significant improvement in revenues, improvement in profit margins of the company. The rating outlook may be revised to “Negative” if there is any deterioration in the financial risk profile.
KEY RATING DRIVERSCredit Strengths:
The Promoters of the Company Mr Ghanshyam Dass Sharma and Mr Loveen Gupta has rich experience of more than 20 years in trading business that helps them to make a better relations with their customers and suppliers as well. The Company has long track record of more than 20 years.
The company has moderate scale of operations with revenues of Rs 17.92 crores in FY20 (Audited) that is further declined to Rs 13.91 crores in FY21 (Provisional), However the company has achieved revenues of Rs 8.00 crores till July 2021 and projected to achieve revenues of Rs 22.00 crores in FY22. The company has modest gearing level with TD/TNW of 0.30 Times along with satisfactory current ratio of 1.86 Times in FY20 (Audited).
The Company has low Profitability Margins with Net Profit Margins of 0.70% and Operating Profitability Margins of 0.78% in FY20 resulting in Low Interest Service Coverage Ratio of 0.67 Times in FY20 (Audited).
The company operates in trading of various electronic items and Plastic Materials which are fragmented industries with a high level of competition resulting in diminishing of their operating margins.
Going forward, the ability of the company to improve its revenues, profitability margins and financial risk profile would remain the key rating sensitivities.
Positive: Rating may be upgraded in case of substantial improvement in revenues and profitability margins.
Negative: Rating may be downgraded in case there is deterioration in financial risk profile of the company
LIQUIDITY INDICATORS - Adequate
1. The company has Subsidiary concern with the name of Subh Labh Tie Up Private Limited, and Associate Concerns with the name of Bhuwalka Makers Private Limited, and RV Medicare Private Limited, There is no such operational linkages betwen them. However the Company has Non Current Investments in their subsidiary concerns of Rs 0.39 Crores in FY20 (Audited).
2. The company has cash & bank balances of Rs 1.54 crores in FY20 (Audietd).
3. The company has average utilisation of 80% for last six months of cash credit limit.
4.The company has nil long term borrowings.
5. The company has Interest Service Coverage Ratio of 0.67 Times and Debt Service Coverage Ratio of 1.62 Times in FY20 (Audited).
6. .The current ratio has been 1.86 Times as at FY20 (Audited).
7.. The company has low conversion cycle of 26 days in FY20 (Audited).
ABOUT THE ENTITYGeberit Electronics Private limited was established in 1996,and engaged in trading of Optical Outdoor Amplifier, Optical indoor Amplifier,Optical Transmitters, CATV Power Supply, Cable Construction, Optical Network, Plastic Raw Material and Other Electronics Items. Company has its office located at Jhilmil Industrial Area, East Delhi. The Company is currently managed by Mr Ghanshyam Dass and Mr Loveen Gupta. The Product are basically used for Telecom & Mobile Operators, Fiber Network Roll Out, Network Operators and Other Networking projects so as to cater the needs of different companies.
KEY FINANCIAL INDICATORS (Standalone)Key Parameters | Units |
FY 19-20 (Audited) |
FY 18-19 (Audited) |
---|---|---|---|
Operating Revenue | Rs.Crs. | 17.92 | 19.90 |
EBITDA | Rs.Crs. | 0.14 | 0.08 |
PAT | Rs.Crs. | 0.13 | 0.08 |
Tangible Net Worth | Rs.Crs. | 4.54 | 4.42 |
Total Debt/Tangible Net Worth | Times | 0.30 | 0.34 |
Current Ratio | Times | 1.86 | 1.57 |
Facilities | Current Rating (2021) | 2021 (History) | 2020 | 2019 | 2018 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 1.50 |
BWR B+/Stable
(Reaffirmation) |
11Jun2021 |
BWR B+ Stable
(Reaffirmation/ISSUER NOT COOPERATING*) |
05Mar2020 |
BWR B+ Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
Non Fund Based | ST | 6.00 |
BWR A4
(Reaffirmation) |
11Jun2021 |
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*) |
05Mar2020 |
BWR A4
(Assignment) |
NA |
NA
|
NA |
NA
|
Grand Total | 7.50 | (Rupees Seven Crores and Fifty 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 | |
---|---|
Aman sharma Rating Analyst Board : +91 172 5032 295 / 6 aman.s@brickworkratings.com |
V.K.Kukreja Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@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 | Jammu and Kashmir Bank | Cash CreditSanctioned | 1.50 | _ | 1.50 | |
2 | Jammu and Kashmir Bank | Cash CreditProposed | _ | _ | 0.00 | |
3 | Jammu and Kashmir Bank | FLC(DA/DP)Sanctioned | _ | 6.00 | 6.00 | |
4 | Jammu and Kashmir Bank | FLC(DA/DP)Proposed | _ | _ | 0.00 | |
Total | 1.50 | 6.00 | 7.50 | |||
TOTAL (Rupees Seven Crores and Fifty lakhs Only) |
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