Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.11.00 Crs. of Windsor Industries Pvt. Ltd.
ParticularsFacility** | Amount (Rs.Crs) | Tenure | Rating* |
---|---|---|---|
Fund Based | |||
Overdraft against Book Debts (ODBD)
Sanctioned
Term Loan Out-standing |
09.90
01.10 |
Long Term | BWR BBB + (Stable) |
Sub Total | 11.00 | ||
Grand Total | 11.00 | (Rupees Eleven Crores Only) |
BWR has assigned the long term rating at “BWR BBB+'' with “Stable” outlook for the bank loan facilities of Windsor Industries Pvt Ltd .The rating draws strength from the experienced directors of the company, moderate financial risk profile, diversified Customer Base and new concept of biodegradable product. However, the rating is constrained on account of competition in the industry and fluctuations in raw material prices.
The rating outlook has been assigned as "Stable" as BWR believes that Windsor Industries 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 profits show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.
KEY RATING DRIVERS
Credit Strengths:
The directors are well experienced and qualified having more than 40 years of business experience. The directors of the company are assisted by a team of professionals who are highly experienced in their respective domains. The company came into existence as Windsor Packaging Pvt Ltd in 1989 with manufacturing of thermocol and other group companies were added and became operational as per need which later on amalgamated under one umbrella M/s Windsor Industries Pvt Ltd. in 2013. The company is in existence for more than 30 years and has seen complete business cycle.
Though Revenues has decreased from Rs.154.29crs in FY19 to 140.82crs in FY20, Company has reported tangible net worth of Rs.34.54crs in FY20 which increased from Rs.30crs in FY19. TOL/TNW decreased from 0.63x in FY19 to 0.49x in FY20 indicating low gearing for the company. Operating profit margin has increased from 6.36% in FY19 to 7.64% in FY20 and Net Profit Margin has also increased from 3.22% in FY19 to 3.83% in FY20. The company had ISCR and DSCR of 23.64x and 11.80x in FY20. Conversion cycle of 32 days is reported in FY20. Current ratio increased from 1.88x in FY19 to 2.21x in FY20. Debt Equity Ratio is reported at 0.18x in FY20.
The company supplies to several well- established institutional customers in the FMCG (Fast Moving Consumer Goods) market with major sales being derived from Godrej & Boyce Manufacturing Company Limited, which contributed ~20% of the total operating income in FY20. Further, the company also supplies to other institutional customers in the domestic market including Amber Enterprises India Limited, Steelbird Hi-Tech India Limited, Revs Enterprises, etc.
Company have introduced an absolutely new concept in the Biodegradable Disposable Crockery for the first time in India. It has embarked in manufacturing disposable crockery by biodegradable corn starch, which apart from being eco-friendly, also redefines the way of partake food.
Credit Risks:
The business segment in which the company operates are characterized by a high level of fragmentation with a large number of unorganized players operating in the segment. This in turn is owing to low entry barriers on account of limited capital and technology requirement and also low differentiation in the end product. With such a scenario, the industry remains highly competitive as well leading to intense pricing pressures for the player resulting in low profitability.
The operations of the company are raw material intensive in nature. The prices of the key raw material viz. Polystyrene is fluctuating in nature and also dependent on crude oil prices which are highly volatile. Also, WIPL passes on the major variations in the prices to its customers. The margins are also vulnerable to changes in product mix of orders executed.
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).
RATING SENSITIVITIES
Going forward, the ability of the firm to improve its financial risk profile and maintaining adequate liquidity will remain the key rating sensitivities.
Positive: The rating may be upgraded if the company interalia, is able to improve its topline and generate profits, or on account of any other favourable factor.
Negative: The rating may be downgraded if inter alia, there is any deterioration in financial risk profile, fails to maintain adequate liquidity or on account of any unforeseen unfavourable events.
LIQUIDITY POSITION
Adequate
The company had cash and cash equivalents balance of Rs.0.07crs as on 31.03.2020. The company had outstanding long term borrowings of Rs.3.07crs in FY20 which includes term loans from Canara Bank. There are no unsecured borrowings of the company as on date. Cash Flow Statement for FY20 was not available. Average utilization of ODBD limit is around 17% for the last six months i.e. from March 2020 to August 2020. Current ratio stood at 2.21x as on 31.03.2020. Conversion cycle of 32 days is reported in FY20. The company had ISCR and DSCR of 23.64x and 11.80x in FY20.
Any Group Concerns
There are no group companies as all the companies have been amalgamated under one roof M/s Windsor Industries Pvt Ltd.
PROFILEM/s Windsor Industries Pvt Ltd is a private limited company incorporated under the provision of the Companies Act,1956. The company was initially formed as Windsor Polypacks Pvt Ltd on 05.July.2005 and later on changed its name to Windsor Industries Pvt Ltd. on 19.Dec.2013. Company has 2 factory works units located at Industrial Focal Point, Kurali, Punjab and Village & Post of Thana, Baddi, Solan, Himachal Pradesh. Mr. Parvinder Singh Sahni and Mrs. Rimpinder Kaur Sahni are the directors in the company having more than 40 years of experience. CEO Mr. Parvinder Singh Sahni established the parent company Windsor Packaging Pvt Ltd in 1989 and other group companies were added and became operational as per need like Windsor Polymers Pvt Ltd, Windsor Packaging (Baroda) Pvt Ltd. later on amalgamated under one umbrella M/s Windsor Industries Pvt Ltd. The company is primarily engaged in manufacturing of Foam Disposable Products, EPS Packagings, BOPP Tapes & Biodegradable Corn Starch. It is the pioneer of EPS (Expanded Polystyrene) thermocol processing in Northern India. Manufacturing of thermocol disposable cups and plates was a logical diversification having manufacturing synergy with the present operations and selling products through North India as well. The purpose of setting up a state of art, fully automatic plant was to serve valued customers in neighbouring states. Company is also enjoying the benefits initiated by State Government like "Excise exemption and Sales Tax". Addition to the manufacturing activities stated above,company is engaged in the services which includes In house packaging designing and Fabrication of fully Automatic high production Aluminium Moulds for Shape Moulding with Captive Tool Room. Company is certified by ISO 9001:2015, ISO 14001:2004, The Environmental Management System and OHSAS 18001, The Occupational Health and Safety Management System Certifications, who are manufacturing all above items under one umbrella. The company was setting up a new installation regarding Biodegradable products which was in work in progress got completed this year which is assumed to increase the production capacity in the coming months. Company have introduced an absolutely new concept in the Biodegradable Disposable Crockery for the first time in India. It has embarked in manufacturing disposable crockery by biodegradable corn starch, which apart from being eco-friendly, also redefines the way of partake food.
KEY FINANCIAL INDICATORSKey Parameters | Units |
FY 19-20 (Audited) |
FY 18-19 (Audited) |
---|---|---|---|
Operating Revenue | Rs.Crs. | 118.42 | 129.90 |
EBITDA | Rs.Crs. | 9.05 | 8.26 |
PAT | Rs.Crs. | 4.54 | 4.18 |
Tangible Net Worth | Rs.Crs. | 34.54 | 30.00 |
Total Debt/Tangible Net Worth | Times | 0.18 | 0.10 |
Current Ratio | Times | 2.21 | 1.88 |
N.A
CRA Name | Date | Amount | Rating |
---|---|---|---|
ICRA | 26 Jun 2020 | 9.90 | [ICRA]BB+ (Stable); ISSUER NOT COOPERATING |
S.No | Current Rating (2020) | Rating History | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Facilities | Tenure | Amount (Rs.Crs) | Rating | 2019 | 2018 | 2017 | ||||
Fund Based | ||||||||||
1 | Overdraft against Book Debts (ODBD) - SanctionedTerm Loan - Out-standing | Long Term | 09.9001.10 | BWR BBB+(Stable) | NA | NA | NA | |||
Total | 11.00 | (Rupees Eleven Crores 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 | Investor Contacts |
---|---|
Kartik Mahesh Ruia Lead Analyst kartik.r@brickworkratings.com |
Liena Thakur Assistant Vice President - Corporate Communications M : +91 84339 94686 liena.t@brickworkratings.com |
V.K.Kukreja Associate Director - Ratings B : +91 11 2341 2232 kukreja.vk@brickworkratings.com |
|
1-860-425-2742 |
SL.No. | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) |
---|---|---|---|---|
1 | Overdraft against Book Debts (ODBD)Sanctioned | 9.90 | _ | 9.90 |
2 | Term LoanOut-standing | 1.10 | _ | 1.10 |
Total | 11.00 | |||
TOTAL (Rupees Eleven Crores 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 |
Brickwork Ratings (BWR), a SEBI registered Credit Rating Agency, accredited by RBI and empaneled by NSIC, offers Bank Loan, NCD, Commercial Paper, MSME ratings and grading services. NABARD has empaneled Brickwork for MFI and NGO grading. BWR is accredited by IREDA & the Ministry of New and Renewable Energy (MNRE), Government of India. Brickwork Ratings has Canara Bank, a leading public sector bank, as its promoter and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented "as is" without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons.