Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.25.75 Crs. of Avadhoot Project Pvt. Ltd.
ParticularsFacility** | Amount (Rs.Crs) | Tenure | Rating* |
---|---|---|---|
Fund Based | |||
Cash Credit Sanctioned | 04.75 | Long Term | BWR BB (Stable) |
Sub Total | 04.75 | ||
Non-Fund Based | |||
Bank Guarantee Sanctioned | 21.00 | Short Term | BWR A4 + |
Sub Total | 21.00 | ||
Grand Total | 25.75 | (Rupees Twenty Five Crores and Seventy Five lakhs Only) |
BWR has essentially relied upon the audited financial statements of Avadhoot Project Pvt. Ltd. for FY18-19, FY19-20, FY20-21, provisional financial statements of F21-22, and projected financial statements of FY22-23, publicly available information, and information/clarifications provided by the entity’s management. The rating draws strength from the vast business experience of the member/s, established track of operations, and modest financial risk profile.
However, the rating is constrained by the current scale of operations, inherent cyclicality in the industry as well as the intense competition from other established players in the market.
BWR believes that Avadhoot Project Pvt. Ltd. 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 the revenues go down and profit margins show lower than expected figures.
KEY RATING DRIVERS
Credit Strengths:
All the Promoters have extensive experience of on an average 10 years in the civil construction industry and has established track record withstanding industry cycles. Over the years, the promoters have established strong relationships with its clients, which has helped company in getting repeated business.
The firm has order book of approx Rs. 257 Crs. as certified by management. This order book position indicates the company's revenue visibility in the coming two-three years. The company's growth prospects would depend upon the successful execution of these works.
As the firm got the orders from Govt. regarding construction of Bridges and ROB. The income purely depends upon getting orders from Govt. and successful bids. It is also exposed to changes to Govt. policies and its norms and bidding criteria.
Since the firm’s business model is tender-based, revenue depends on the company’s ability to win tenders successfully. Going ahead, revenue and profitability are expected to remain susceptible to inherent risks in tender-based operations. Apart from that, the completion of projects on a timely basis, along with the timely realization of proceeds from the authorities remains a key monitorable.
For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).
PROFILEAvadhoot Project Pvt. Ltd established as Avadhoot Construction Company in 1983. It was constituted as Pvt.Ltd from 01/04/2017. It is working as civil engineering Contractor since its establishment. It has constructed number of Bridges and ROBs including its approaches. It is registered as "AA" class contractor in Road and Buildings Department, Government of Gujarat with special Category " I " for Bridge Works. It is also registered in the recent past as 'A' category for major bridge work with western railway Mumbai.
KEY FINANCIAL INDICATORSKey Parameters | Units |
FY 20-21 (Audited) |
FY 19-20 (Audited) |
---|---|---|---|
Operating Revenue | Rs.Crs. | 57.86 | 71.70 |
EBITDA | Rs.Crs. | 4.49 | 4.20 |
PAT | Rs.Crs. | 2.10 | 2.21 |
Tangible Net Worth | Rs.Crs. | 11.95 | 9.85 |
Total Debt/Tangible Net Worth | Times | 0.98 | 1.62 |
Current Ratio | Times | 1.12 | 0.87 |
S.No | Current Rating (2022) | Rating History | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Facilities | Tenure | Amount (Rs.Crs) | Rating | 2021 | 2020 | 2019 | ||||
Fund Based | ||||||||||
1 | Cash Credit - Sanctioned | Long Term | 04.75 | BWR BB(Stable) | NA | NA | NA | |||
Non-Fund Based | ||||||||||
2 | Bank Guarantee - Sanctioned | Short Term | 21.00 | BWR A4+ | NA | NA | NA | |||
Total | 25.75 | (Rupees Twenty Five Crores and Seventy Five 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 Criteria : For More Information Contact:Analytical Contacts | |
---|---|
Joshi Vishalkumar Dinkarkumar Lead Analyst vishalkumar.j@brickworkratings.com |
Dileep Narayan Singh Director dileep.s@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 | The Mehsana Urban Co-operative Bank | Cash CreditSanctioned | 4.75 | _ | 4.75 |
2 | The Mehsana Urban Co-operative Bank | Bank GuaranteeSanctioned | _ | 21.00 | 21.00 |
Total | 4.75 | 21.00 | 25.75 | ||
TOTAL (Rupees Twenty Five Crores and Seventy Five lakhs Only) |
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate | Maturity Date | ISIN Particulars |
---|---|---|---|---|---|
NA | NA | NA | NA | NA | NA |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
NA | NA | NA | NA |
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