Brickwork Ratings had reaffirmed the long-short term ratings under Issuer Not Cooperating category and simultaneously withdrawn the ratings for the Bank Loan Facilities of Rs.295.23Crs of Gravita India Ltd, based on best available information, as the issuer did not cooperate.
ParticularsFacilities** | 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/Stable ISSUER NOT COOPERATING/Reaffirmed and withdrawn |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/Stable ISSUER NOT COOPERATING/Reaffirmed and withdrawn |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ISSUER NOT COOPERATING/Reaffirmed and withdrawn |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) |
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to BWR BBB+/Stable and BWR A2, continued the same under Issuer Not Cooperating (INC) category and simultaneously withdrawn its ratings with immediate effect.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 ENTITYGravita 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.
Nil
ANY OTHER INFORMATIONNil
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) |
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 | |
---|---|
Akanksha Senior Rating Analyst akanksha@brickworkratings.com |
Ravi Rashmi Dhar Associate Director - Ratings ravi.d@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 | 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) |
The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.
About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.
Disclaimer
Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.
BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).
BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.
The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.
BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.
BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.
Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.
BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.
This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.
BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.