RATING RATIONALE
21Jul2021

Lodha Group - Cowtown Infotech Services Private Limited (erstwhile Cowtown Land Development Pvt. Ltd.)

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs.300.00 Crs of Cowtown Infotech Services Private Limited (CISPL).

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(28 Jul 2020)
Present
Non Fund Based 300.00 300.00 Short Term BWR A3 (CE)
BWR A3 (CE)
Reaffirmation
(75.00) (75.00)
Grand Total 300.00 300.00 (Rupees Three Hundred 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

The Ratings with the symbol CE are based on Credit Enhancement in the form of  Corporate Guarantee of Macrotech Developers Limited (MDL). The Corporate Guarantee has been stipulated as a condition of sanction of the said facilities by the bank.

Unsupported rating of Cowtown Infotech Services Private Limited is BWR A3. 



RATING ACTION / OUTLOOK

Reaffirmation BWR A3 (CE).

The rating continues to factor in the established track record of Lodha Group, financial and managerial support from the flagship Company Macrotech Developers Limited and importance of the Company to the Group. The rating also continues to factor in the Corporate Guarantee extended by MDL. The rating is, however constrained by transactions mainly happening with related parties, thin profitability margins and the Group’s relatively high level of debt.

KEY RATING DRIVERS


Credit Strengths:


Credit Risks:

RATING SENSITIVITIES

The Performance of the group Companies in the real estate sector and the RE industry in general.

LIQUIDITY INDICATORS - Adequate

The company does not have any term debt repayment obligations. Since it in effect acts as a supplier of building materials and accessories to the group companies, they take care of the due repayments. The receivables from the group is around Rs.475 Crs as at March 2021. The Liquidity is considered adequate as group support is always there,

ABOUT THE ENTITY

Cowtown Infotech Services Private Limited (CISPL) was incorporated in 1985. Company is a part of of Lodha group where Macrotech Developers Limited (MDL) (earlier Lodha Developers Pvt Ltd) holds 100% equity stake. CISPL's business is in trading of construction related materials, both for exterior and interior uses, like tiles, ceramic materials, granite and other stones, lighting, etc. and income from construction contract  for Group companies executing various projects.

Macrotech Developers Limited: Established in 1980, the Lodha Group is a major real estate developer in Mumbai Metropolitan Region (MMR) with focus on developing residential and office spaces. Macrotech Developers Limited (earlier known as Lodha Developers Limited) is the flagship company of the group was incorporated in 1995. The name of the Company has been changed to “Marcotech Developers Limited” from “Lodha Developers Limited” with effect from 24th of May 2019. The brand name continues as Lodha and all projects will continue to be named and sold/leased under the Lodha brands. The board consists of six members with Mr. Abhishek Mangal Prabhat Lodha as Managing Director and Chief Executive Officer and Board comprises two independent Directors.   

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 20-21
(Audited)
FY 19-20
(Audited)
Operating Revenue Rs.Crs. 1042.30 2208.39
EBITDA Rs.Crs. 31.08 51.69
PAT Rs.Crs. 19.84 3.90
Tangible Net Worth Rs.Crs. -14.72 -34.58
Total Debt/Tangible Net Worth Times -17.46 -5.42
Current Ratio Times 1.03 1.05

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
Non Fund Based ST 300.00
BWR A3(CE)
(Reaffirmation)
28Jul2020
BWR A3 (CE)
()
09May2019
BWR A2+(SO)
(Reaffirmed )
09Feb2018
BWR A2+(SO)
(Reaffirmed )
NFB SubLimit ST (75.00)
BWR A3(CE)
(Reaffirmation)
28Jul2020
BWR A3 (CE)
()
09May2019
BWR A2+(SO)
(Reaffirmed)
09Feb2018
BWR A2+(SO)
(Reaffirmed)
Grand Total 300.00 (Rupees Three Hundred Crores Only)
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

Ajit S Jagnade

Senior Manager - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 ajit.j@brickworkratings.com

Vidya Shankar

Principal Director - Ratings Board : +91 80 4040 9940 vidyashankar@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Lodha Group - Cowtown Infotech Services Private Limited (erstwhile Cowtown Land Development Pvt. 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 Bank of Baroda Letter of CreditSanctioned _ 300.00 300.00
Sub-Limit (Bank Gaurantee) Sanctioned (75.00)
Total 0.00 300.00 300.00
TOTAL (Rupees Three Hundred Crores Only)
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