RATING RATIONALE
12May2023

Gravita India Ltd.

Brickwork Ratings had reaffirmed the long-short term ratings under Issuer Not Cooperating category and simultaneously withdrawn the ratings for the Bank Loan Facilities of Rs.295.23Crs of Gravita India Ltd, based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(13 Jan 2023)
Present
Fund Based 257.33 257.33 Long Term BWR BBB+ /Stable
ISSUER NOT COOPERATING*/Downgraded
BWR BBB + /Stable
ISSUER NOT COOPERATING/Reaffirmed and withdrawn
Non Fund Based 10.00 10.00 Long Term BWR BBB+/Stable
ISSUER NOT COOPERATING*/Downgraded
BWR BBB + /Stable
ISSUER NOT COOPERATING/Reaffirmed and withdrawn
27.90 27.90 Short Term BWR A2
ISSUER NOT COOPERATING*/Downgraded
BWR A2
ISSUER NOT COOPERATING/Reaffirmed and withdrawn
Grand Total 295.23 295.23 (Rupees Two Hundred Ninety Five Crores and Twenty Three 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
*** As informed by the company, bank facilities running with Bandhan Bank and ICICI Bank have been fully paid off.
Note: *Issuer did not cooperate; based on best available information.

RATING ACTION / OUTLOOK

Due to inadequate information, lack of management cooperation and as per extant SEBI guidelines, Brickwork Ratings (BWR) had previously downgraded the long-short term ratings to BWR BBB+/Stable and BWR A2 and categorized the ratings under “Issuer Not Cooperating” for the bank loan facilities amounting to Rs.295.23Crs of Gravita India Limited (or the company) vide its press release dated 13 January, 2023.

Now, the company has taken up with BWR for withdrawal of its existing rating, along with No Objection Certificates (NOCs) from all the lenders including lead lender State Bank of India in this regard. Accordingly, based on best/limited available information at the time of withdrawal of its ratings, BWR has reaffirmed the long-short term ratings to BWR BBB+/Stable and BWR A2, continued the same under Issuer Not Cooperating (INC) category and simultaneously withdrawn its ratings with immediate effect. 

The withdrawal of the rating is as per the company’s request for withdrawal vide letter dated 17 March, 2023 and pursuant to receiving No Objection Certificates/No Dues Certificates from all the concerned lenders on 9 May, 2023. The withdrawal of ratings is in line with BWR's policy on the withdrawal of its ratings on bank loan facilities. 

As per the publicly available information, on consolidated basis the company has reported y-on-y growth of 26.39% in its total operating income to Rs.2800.60Crs vis a vis Rs.2215.87Crs in FY22 and reported Profit After Tax (PAT) of Rs.204.09Crs in FY23 as against Rs.148.45Crs in FY22. The operating profit margin of the company has however declined to 7.06% in FY23 vis a vis 9.52% in FY22. 

ABOUT THE ENTITY

Gravita India Limited (GIL) is a listed public limited company, incorporated in 1992 by Mr. M.P. Agrawal and Mr. Rajat Agrawal. GIL is majorly engaged in the recycling of lead and manufacturing of lead-based products. GIL presently runs four units - Unit I and Unit III are located at Jaipur, Unit II in Gandhidham (Gujarat) and Unit IV in Chittor (Andhra Pradesh). GIL also provides turnkey solutions for the development of plant & machinery for lead manufacturing units.

 
 

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

Nil

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2023 (History) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 257.33
BWR BBB+/Stable
(ISSUER NOT COOPERATING/Reaffirmed and withdrawn)
13Jan2023
BWR BBB+ Stable
(ISSUER NOT COOPERATING*/Downgraded)
NA
NA
04Jan2021
BWR BWR A-Stable
(Reaffirmed)
18Sep2020
BWR BWR A-Stable
(Reaffirmed)
0.00
NA
NA
NA
NA
NA
14Oct2021
BWR AStable
(Upgrade)
NA
NA
Non Fund Based LT 10.00
BWR BBB+/Stable
(ISSUER NOT COOPERATING/Reaffirmed and withdrawn)
13Jan2023
BWR BBB+Stable
(ISSUER NOT COOPERATING*/Downgraded)
NA
NA
04Jan2021
BWR BWR A-Stable
(Assignment)
NA
NA
0.00
NA
NA
NA
NA
NA
14Oct2021
BWR AStable
(Upgrade)
NA
NA
Non Fund Based ST 27.90
BWR A2
(ISSUER NOT COOPERATING/Reaffirmed and withdrawn)
13Jan2023
BWR A2
(ISSUER NOT COOPERATING*/Downgraded)
NA
NA
04Jan2021
BWR BWR A2
(Reaffirmed)
18Sep2020
BWR BWR A2
(Reaffirmed)
0.00
NA
NA
NA
NA
NA
14Oct2021
BWR A2+
(Upgrade)
NA
NA
Grand Total 295.23 (Rupees Two Hundred Ninety Five Crores and Twenty Three lakhs Only)
*** As informed by the company, bank facilities running with Bandhan Bank and ICICI Bank have been fully paid off. 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

Akanksha

Senior Rating Analyst akanksha@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Gravita India Ltd.
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 Bandhan Bank Term LoanSanctioned 12.94 _ 12.94
2 Canara Bank Cash CreditSanctioned 10.10 _ 10.10
3 Canara Bank Covid -19 Emergency Line CreditSanctioned 0.44 _ 0.44
4 Canara Bank GECLSanctioned 9.60 _ 9.60
5 Canara Bank ILC/FLC/BGSanctioned _ 1.40 1.40
6 ICICI Bank Standby line of Credit (SLC)Sanctioned 10.00 _ 10.00
7 ICICI Bank Cash CreditSanctioned 7.00 _ 7.00
8 Jammu and Kashmir Bank Cash CreditSanctioned 8.75 _ 8.75
9 Jammu and Kashmir Bank Covid -19 Emergency Line CreditSanctioned _ _ 0.00
10 Punjab National Bank Covid -19 Emergency Line CreditSanctioned 1.76 _ 1.76
11 Punjab National Bank Term LoanSanctioned 0.40 _ 0.40
12 Punjab National Bank Cash CreditSanctioned 39.00 _ 39.00
13 Punjab National Bank GECLSanctioned 8.86 _ 8.86
14 State Bank Of India (SBI) ILC/FLC/BGSanctioned _ 23.00 23.00
15 State Bank Of India (SBI) Cash CreditSanctioned 102.00 _ 102.00
16 State Bank Of India (SBI) GECLSanctioned 13.35 _ 13.35
17 State Bank Of India (SBI) Covid -19 Emergency Line CreditSanctioned 5.70 _ 5.70
18 UCO Bank Covid -19 Emergency Line CreditSanctioned 1.36 _ 1.36
19 UCO Bank Cash CreditSanctioned 20.50 _ 20.50
20 UCO Bank ILC/FLC/BGSanctioned _ 3.50 3.50
21 Union Bank of India Cash CreditSanctioned 14.75 _ 14.75
22 Union Bank of India Covid -19 Emergency Line CreditSanctioned 0.82 _ 0.82
Total 267.33 27.90 295.23
TOTAL (Rupees Two Hundred Ninety Five Crores and Twenty Three lakhs Only)
* As informed by the company, bank facilities running with Bandhan Bank and ICICI Bank have been fully paid off.

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