RATING RATIONALE
20Oct2021

Lakshmi Transformers & Electricals

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 59.00 Crs. of Lakshmi Transformers & Electricals

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(31 Dec 2020)
Present
Fund Based 9.00 9.00 Long Term BWR BB+/Stable
Reaffirmation
BWR BB + /Stable
Reaffirmation
Non Fund Based 50.00 50.00 Short Term BWR A4+
Reaffirmation
BWR A4 +
Reaffirmation
Grand Total 59.00 59.00 (Rupees Fifty Nine Crores 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
Note: The total facility has a cap of 50crs.


RATING ACTION / OUTLOOK

BWR reaffirms the ratings of long term facility as BWR BB+ (Stable) and short term facility as A4+ for the bank loan facilities to Lakshmi Transformers & Electricals.

The rating draws strength from Experienced Partners and long operational track record and a Moderate financial risk profile.  However, the rating is constrained by Constitution Risk, Business Concentration Risks, and High competition.

BWR believes that Lakshmi Transformers & Electricals business risk profile 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 the revenues and profit show sustained improvement. The rating outlook may be revised to 'Negative' if there is any deterioration in financial risk profile.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

LIQUIDITY INDICATORS - Adequate

Lakshmi trans Power Ltd. is a group associate of Lakshmi Transformers and Electricals but there is no operational linkage between them.

1. The company has Cash & Bank balances of Rs. 14.78 Crs in FY20(A). The company has Cash & Bank Balance of Rs 12.95 crs. in FY20(A).

2. Long term borrowings of Rs.0.22 crs in FY21(A) comprises of unsecured loans from Sanjay SInghal (Partner).

3. ISCR is at 3.11x in FY21(A) and DSCR is at 2.63x in FY21(A).

4. The current ratio is 1.79x in FY21(A).

5. Conversion Cycle is 0 days in FY21(A).

6. Average CC utilization from March 2021 to August 2021 is 0%. 

ABOUT THE ENTITY

Lakshmi Transformers & Electricals, initially incorporated in 1992 and now working as partnership firm with its registered office at B-8, Site A, UPSIDC Industrial Area, Sikandra, Agra, U.P is engaged in the business of manufacturing and marketing of Power and Distribution transformers and executing turnkey projects relating to electrification. Siddharth Singhal, Sanjay Singhal, Seema Singhal and Lakshmi Trans Powers Limited are the partners in the firm. The firm has two manufacturing units located in Agra of UP and caters primarily to government departments majorly in UP (75%) and also to Rajasthan, Madhya Pradesh, Maharashtra and other states. While the 3 firm has been involved in executing business sourced fully from government departments, over the past few years, the firm has started sourcing from private entities as well and has also commenced exports, although in a small measure

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 101.23 70.20
EBITDA Rs.Crs. 5.84 4.20
PAT Rs.Crs. 2.96 1.98
Tangible Net Worth Rs.Crs. 27.11 28.36
Total Debt/Tangible Net Worth Times 0.01 0.01
Current Ratio Times 1.79 1.82

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 9.00
BWR BB+/Stable
(Reaffirmation)
31Dec2020
BWR BB+Stable
(Reaffirmation)
24Jan2019
BWR BB-Stable
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
NA
NA
25Oct2019
BWR BB+Stable
(Upgrade)
NA
NA
Non Fund Based ST 50.00
BWR A4+
(Reaffirmation)
31Dec2020
BWR A4+
(Reaffirmation)
24Jan2019
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
NA
NA
25Oct2019
BWR A4+
(Upgrade)
NA
NA
Grand Total 59.00 (Rupees Fifty Nine Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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

Vishesh Phogaat

Ratings Analyst vishesh.p@brickworkratings.com

V.K.Kukreja

Associate Director - Ratings Board : +91 11 2341 2232 kukreja.vk@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Lakshmi Transformers & Electricals
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 Punjab National Bank Cash CreditSanctioned 9.00 _ 9.00
2 Punjab National Bank Bank GuaranteeSanctioned _ 35.00 35.00
3 Punjab National Bank ILC/FLCSanctioned _ 15.00 15.00
Total 9.00 50.00 59.00
TOTAL (Rupees Fifty Nine Crores Only)
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