RATING RATIONALE
24Aug2022

Nitin Spinners Ltd.

Brickwork Ratings reaffirms and withdraws the ratings for the Bank Loan Facilities of Rs. 1188.21 Crs. of Nitin Spinners Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(19 Aug 2021)
Present
Fund Based 1133.36 1133.36 Long Term BWR A/Stable
Reaffirmation and change in Outlook
BWR A /Stable
Reaffirmation/Withdrawal
Non Fund Based 54.85 54.85 Short Term BWR A1
Reaffirmation
BWR A1
Reaffirmation/Withdrawal
Grand Total 1188.21 1188.21 (Rupees One Thousand One Hundred Eighty Eight Crores and Twenty One lakhs 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

RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) has reaffirmed the long-term rating at BWR A and short-term rating at BWR A1, and has simultaneously withdrawn the ratings for the bank loan facilities of Nitin Spinners Ltd. The withdrawal of the rating is as per the company’s withdrawal request, along with No Objection Letters from lenders, and is in line with BWR’s policy on the withdrawal of ratings. The reaffirmation of the rating is on account of the company’s comfortable financial risk profile.
 
The company registered healthy growth in the total revenue, from Rs 1,626.31 Crs in FY21 to Rs 2,694.16 Crs in FY22, at an annual growth rate of 65.66%, led by the increased quantity sold and better sales realisations, on the back of healthy export and domestic demand. The operating profit margins improved from 15.84% in FY21 to 24.20% in FY22, led by better sales realisations; the net profit margins improved from 4.24% in FY21 to 12.11% in FY22. The overall gearing stood at a comfortable level of 0.79x as on 31 March 2022 (Previous Year: 1.71x), while the Interest Service Coverage Ratio stood at 11.78x in FY22 (PY:4.18x). The company has registered Rs.709.65 Crs in revenues in Q1FY23 against Rs.553.86 Crs in the corresponding quarter last  year. The PBILDT and PAT margins stood at 15.47% and 9.24% during the quarter, compared to 23.26% and 10.83%, respectively, in Q1FY22. The ISCR continued to remain at a comfortable level of 9.58x in Q1FY23 (PY:9.40x). 

ABOUT THE ENTITY

Nitin Spinners Ltd. (NSL) was incorporated in 1993 at Bhilwara, Rajasthan. It is a well-established player in the cotton yarn segment, an ISO 9001:2008 certified company and a Government of India recognised export house.The company also has Environment and Energy Management System certifications ISO 14000 and ISO 50001, OSHAS for occupational safety and SA 8000 for social accountability. It is a listed entity on the NSE and BSE. The company has a present capacity of 300048 spindles with a production capacity of 63929 MTPA and 3488 rotors with a production capacity of 10416 MTPA. The company is promoted by Mr. R.L Nolkha, who has more than four decades  of experience in the cotton textile industry. He is supported by his sons Mr. Dinesh Nolkha and Mr. Nitin Nolkha. The promoters have also hired qualified professionals to manage the different aspects of the business. The board also includes three independent directors to ensure corporate governance in the company.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

ANY OTHER INFORMATION

NA

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 1133.36
BWR A/Stable
(Reaffirmation/Withdrawal)
19Aug2021
BWR AStable
(Reaffirmation and change in Outlook)
02Mar2020
BWR AStable
(Reaffirmation and change in Outlook)
23Jul2019
BWR APositive
(Reaffirmation)
0.00
NA
NA
NA
27Aug2020
BWR ANegative
(Reaffirmation and change in Outlook)
NA
NA
Non Fund Based ST 54.85
BWR A1
(Reaffirmation/Withdrawal)
19Aug2021
BWR A1
(Reaffirmation)
02Mar2020
BWR A1
(Reaffirmation)
23Jul2019
BWR A1
(Reaffirmation)
0.00
NA
NA
NA
27Aug2020
BWR A1
(Reaffirmation)
NA
NA
Grand Total 1188.21 (Rupees One Thousand One Hundred Eighty Eight Crores and Twenty One lakhs 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

Raman Thakur

Senior Rating Analyst Board : +91 11 2341 2232 raman.t@brickworkratings.com

Sudeep Sanwal

Associate Director - Ratings sudeep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Nitin Spinners 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 Term LoanOut-standing 130.01 _ 130.01
2 Bank of Baroda Credit Exposure Limit (CEL)Sanctioned _ 2.50 2.50
3 Bank of Baroda FBWC (CC/EPC/FBD/FBP)Sanctioned 50.00 _ 50.00
4 Bank of Baroda ILC/FLC/BGSanctioned _ 3.00 3.00
5 Punjab National Bank FBWC (CC/EPC/FBD/FBP)Sanctioned 237.00 _ 237.00
6 Punjab National Bank ILC/FLC/BGSanctioned _ 28.25 28.25
7 Punjab National Bank Term LoanOut-standing 388.64 _ 388.64
8 Punjab National Bank Credit Exposure Limit (CEL)Sanctioned _ 7.30 7.30
9 State Bank Of India (SBI) Term LoanOut-standing 65.71 _ 65.71
10 State Bank Of India (SBI) FBWC (CC/EPC/FBD/FBP)Sanctioned 128.00 _ 128.00
11 State Bank Of India (SBI) Credit Exposure Limit (CEL)Sanctioned _ 2.00 2.00
12 State Bank Of India (SBI) ILC/FLC/BGSanctioned _ 6.00 6.00
13 Union Bank of India ILC/FLC/BGSanctioned _ 5.00 5.00
14 Union Bank of India Credit Exposure Limit (CEL)Sanctioned _ 0.80 0.80
15 Union Bank of India FBWC (CC/EPC/FBD/FBP)Sanctioned 40.00 _ 40.00
16 Union Bank of India Term LoanOut-standing 94.00 _ 94.00
Total 1133.36 54.85 1188.21
TOTAL (Rupees One Thousand One Hundred Eighty Eight Crores and Twenty One lakhs Only)
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