RATING RATIONALE
13Jul2022

Jaybee Laminations Pvt. Ltd.

Brickwork Ratings upgrades the long term rating and reaffirm the short term ratings for the Bank Loan Facilities of Rs. 61.00 Crs. of Jaybee Laminations Pvt. Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(21 Dec 2021)
Present
Fund Based 20.00 20.00 Long Term BWR BB /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR BB + /Stable
Upgrade
(4.00) (16.36) Short Term BWR A4+
Downgrade/ISSUER NOT COOPERATING*
BWR A4 +
Reaffirmation
Non Fund Based 20.00 41.00 Short Term BWR A4+
Downgrade/ISSUER NOT COOPERATING*
BWR A4 +
Reaffirmation
(20.00) (10.00)
Grand Total 40.00 61.00 (Rupees Sixty One 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
Note: *Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK

Brickwork Ratings has upgraded the long term rating  and reaffirmed the short term rating for the bank facilities availed by Jaybee Laminations Pvt. Ltd. (JLPL, or ‘the company’).  The upgrade in the long-term rating takes into account healthy scale-up of operations with improved profitability margins and a comfortable overall solvency profile in FY22 (Prov.). The ratings further derive strength from the experienced management team and established relationships with the customers & suppliers. The ratings are, however, constrained by the susceptibility of the margins to any adverse fluctuations in the raw material prices and forex rates and stiff competition due to the fragmented nature of industry.

OUTLOOK: STABLE

BWR believes that the business and financial risk profile of JLPL will be maintained over the medium term. The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. The outlook may be revised to 'Positive' in case revenue and profitability show a sustained improvement leading to an improved financial and liquidity profile. The rating outlook may be revised to 'Negative' in case the profitability generated declined, there are aggressive debt-funded capex plans, or there is a significant deterioration in the overall liquidity profile of the company.

 

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

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

Positive: The rating may be positively revised if if there is a significant & sustainable improvement in the scale of operations, profitability margins, and the solvency & liquidity profiles continue to remain satisfactory.

Negative: The rating would be adversely affected if the revenue & profitability decline considerably or there is a deterioration in the solvency & liquidity profile of the company.

LIQUIDITY INDICATORS - Adequate

The Current ratio of the company stood at a satisfactory level of 1.48 times, as on March 31, 2022 (Prov.).  The debt protection metrics also stood comfortable with ISCR of 3.32x in FY22 (Prov.). The company had a debt repayment obligation of Rs.  1.05 Cr. in FY22, which was met through internal accruals. It has a repayment obligation of Rs.1.90 Cr. in FY23 which is also expected to be met through the cash accruals. Average utilization of working capital limits stood at ~87% for the 12 month period till May-22. The cash and cash equivalents stood at Rs.0.03 Crs as on March 31, 2022 (Prov.).

ABOUT THE ENTITY

Jaybee Laminations Pvt Ltd was incorporated in 1988 as a private limited company having its registered office at East Patel Nagar, New Delhi. The company is engaged in the manufacturing of cold rolled grain oriented (CRGO) silicon steel products which are used in distribution and power transformers. It has two manufacturing units located in Noida (UP) with an installed capacity of 16800 MTPA. The company is managed by its directors Mr. M.K. Aggarwal and Mr. Mudit Aggarwal.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Provisional)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 141.43 75.03
EBITDA Rs.Crs. 12.64 2.25
PAT Rs.Crs. 5.90 -1.28
Tangible Net Worth Rs.Crs. 30.74 24.85
Total Debt/TNW Times 0.87 1.09
Current Ratio Times 1.48 1.97
KEY COVENANTS OF THE FACILITY RATED

NA


STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Acuite has migrated the rating under INC (for the Rs.57.11 Cr. facility) vide Press Release dated November 05, 2021.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2022) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 20.00
BWR BB+/Stable
(Upgrade)
21Dec2021
BWR BB Stable
(Downgrade/ISSUER NOT COOPERATING*)
13Nov2020
BWR BB+ Stable
(Assignment)
19Jul2019
BWR BB Stable
(Downgrade/Withdrawal)
FB SubLimit ST (16.36)
BWR A4+
(Reaffirmation)
21Dec2021
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
Non Fund Based ST 41.00
BWR A4+
(Reaffirmation)
21Dec2021
BWR A4+
(Downgrade/ISSUER NOT COOPERATING*)
13Nov2020
BWR A4+
(Assignment)
19Jul2019
BWR A4
(Downgrade/Withdrawal)
NFB SubLimit ST (10.00)
BWR A4+
(Reaffirmation)
NA
NA
NA
NA
NA
NA
Grand Total 61.00 (Rupees Sixty One 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

Aditya Singh

Ratings Analyst adityasingh@brickworkratings.com

Sudeep Sanwal

Associate Director - Ratings sudeep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Jaybee Laminations 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 Canara Bank Overdraft against Book Debts (ODBD)Sanctioned 20.00 _ 20.00
2 Canara Bank Letter of CreditSanctioned _ 6.00 6.00
3 Canara Bank ILC/FLC/BGSanctioned _ 35.00 35.00
Total 20.00 41.00 61.00
TOTAL (Rupees Sixty One Crores Only)
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