RATING RATIONALE
04Oct2021

A Infrastructure Limited

Brickwork Ratings reaffirms the ratings for the enhanced Bank Loan Facilities of Rs.131.92Crs of A Infrastructure Limited.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(07 Sep 2021)
Present
Fund Based 47.00 86.92 Long Term BWR BBB
Upgrade
BWR BBB /Stable
Reaffirmation
Non Fund Based 45.00 45.00 Short Term BWR A3+
Upgrade
BWR A3 +
Reaffirmation
Grand Total 92.00 131.92 (Rupees One Hundred Thirty One Crores and Ninety Two 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


RATING ACTION / OUTLOOK

The ratings of A Infrastructure Ltd (AIL or the company ) were last upgraded on 07Sep21. The present reaffirmation in the ratings is for the enhanced debt amount of Rs.131.92Crs and the same has been updated in Annexure I below. All other factors, rating criteria and rating drivers remain unchanged. The last rationale published on the 7Sept21 and can be viewed at the following link:

http://bcrisp.in///BLRHTML/HTMLDocument/ViewRatingRationaleReview?id=28129

 

KEY RATING DRIVERS

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology on a standalone basis, as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

The ratings of the company are sensitive to improvement in its revenues, gross and net profit margins, 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 including its working capital cycle and commencement of Distillery Unit.

Negative: The ratings may be downgraded if there is any deterioration in the financial risk profile of the company and decline in its revenues and profitability margins.

LIQUIDITY INDICATORS - Adequate

The liquidity of the company has been comfortable as indicated by the current ratio (CR) of 1.28x in FY 21, coupled with a moderate working capital cycle to 102 days. Further, the company has been generating an average EBITDA of Rs.17.82Crs for the years FY 19~21 against the interest obligation of Rs.8.72Crs for the same tenure. The cash accruals of the company of Rs.9.23Crs in FY21 and has projected accruals of Rs.9.70Crsin FY 22 will be sufficient for the repayment obligation of Rs.4.47Crs in FY21.

ABOUT THE ENTITY

The company was incorporated as Shree Pipes Limited on 30.08.1980 and installed a plant in 1985 to manufacture Asbestos Cement (AC) Pressure Pipes & Couplings. The company changed its name from Shree Pipes Limited to “A Infrastructure Limited” in Dec 1993. In 2005, the Company diversified its operations to A.C. Roofing Sheets at Ahmedabad.

 

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 267.65 248.58
EBITDA Rs.Crs. 19.36 17.23
PAT Rs.Crs. 6.21 3.67
Tangible Net Worth Rs.Crs. 61.63 55.16
Total Debt/Tangible Net Worth Times 1.23 1.58
Current Ratio Times 1.28 1.23

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
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 86.92
BWR BBB/Stable
(Reaffirmation)
07Sep2021
BWR BBB
(Upgrade)
31Aug2020
BWR BBB-Stable
(Reaffirmation)
22Aug2019
BWR BBB-Stable
(Reaffirmation)
19Jul2018
BWR BBB-Stable
(Assignment)
Non Fund Based ST 45.00
BWR A3+
(Reaffirmation)
07Sep2021
BWR A3+
(Upgrade)
31Aug2020
BWR A3
(Reaffirmation)
22Aug2019
BWR A3
(Reaffirmation)
19Jul2018
BWR A3
(Assignment)
Grand Total 131.92 (Rupees One Hundred Thirty One Crores and Ninety Two lakhs Only)
Rating Advisory, as on 01Sep2021
Press Release, as on 01Sep2021
Rating moved to Not Reviewed Advisory.

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

Neha Jain

Senior Rating Analyst Board : +91 11 2341 2232 neha.j@brickworkratings.com

Ashwini Mital

Director - Ratings Board : +91 172 5032 295 / 6 ashwinimital@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
A Infrastructure Limited
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 17.60 _ 17.60
2 Bank of Baroda Letter of CreditSanctioned _ 16.20 16.20
3 Bank of Baroda Bank GuaranteeSanctioned _ 4.50 4.50
4 Bank of Baroda GECLSanctioned 3.40 _ 3.40
5 Kotak Mahindra Bank Corporate Home LoanOut-standing 10.33 _ 10.33
6 Standard Chartered Bank Loans against PropertyOut-standing 18.06 _ 18.06
7 Standard Chartered Bank Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned 3.88 _ 3.88
8 State Bank Of India (SBI) GECLSanctioned 4.25 _ 4.25
9 State Bank Of India (SBI) Cash CreditSanctioned 19.00 _ 19.00
10 State Bank Of India (SBI) Letter of CreditSanctioned _ 15.00 15.00
11 State Bank Of India (SBI) Bank GuaranteeSanctioned _ 5.00 5.00
12 Un tied portion from consortium of banks Cash CreditSanctioned 10.40 _ 10.40
13 Un tied portion from consortium of banks Letter of CreditSanctioned _ 3.30 3.30
14 Un tied portion from consortium of banks Bank GuaranteeSanctioned _ 1.00 1.00
Total 86.92 45.00 131.92
TOTAL (Rupees One Hundred Thirty One Crores and Ninety Two lakhs Only)
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