ASCENT ENGINEERS & INFRASTRUCTURES INDIA PVT.LTD

Brickwork Ratings has assigned a long-term rating of BWR BBB-/Stable and a short-term rating of BWR A3 to Ascent Engineers and Infrastructures India Pvt. Ltd. for its Bank Loan Facilities of Rs. 42.00 crores.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	12.00	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	30.00	Short Term	BWR A3 Assignment
Grand Total	42.00	(Rupees Forty Two 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 RATING ACTION / OUTLOOK

Brickwork Ratings has assigned the Long-Term Rating of BWR BBB- with a Stable outlook and the Short-Term Rating of BWR A3 for the Bank Loan Facilities amounting to Rs. 42.00 Crore of Ascent Engineers and Infrastructures India Pvt Ltd. The assignment of the ratings reflects experienced management, established client relationships, revenue growth, stable profitability, and an adequate financial risk profile. The ratings also factor in the company’s efficient working capital management and adequate liquidity position. However, the ratings are constrained in terms of customer concentration, execution-related challenges, and vulnerability to policy and spending cycles. The “Stable” outlook reflects the expectation of a stable credit profile over the near to medium term.

KEY RATING DRIVERS

Credit Strengths:

• Extensive Experience of the Proprietor and Adequate Revenue Visibility :

  The company benefits from the promoters’ extensive industry experience of nearly three decades in executing private EPC and civil construction projects. Their long-standing presence in the sector has enabled Ascent Engineers & Infrastructure Pvt. Ltd. to build sustained relationships with reputed clients such as Wipro Limited, Alliance Business School (Bengaluru), and other established private entities. This strong client network, developed through consistent execution and technical competence, continues to support repeat business and stable order inflows.This resulted in repeat orders from the private entities reflecting a Revenue has grown to Rs 71.07 crore in fiscal 2024 from Rs 56.61 crore in fiscal 2023, and further improved to Rs 90.61 crore in fiscal 2025. The firm has a healthy order book of over Rs ~161.84 crore as of Nov 2025, to be executed over the next 2 years, providing adequate revenue visibility. The extensive experience of the proprietor will continue to support the business over the medium term.

• Moderate Financial Risk Profile :

  The Estimated Net worth is modest at Rs. 19.56 crore as on March 31st, 2025. Debt protection metrics are comfortable with estimated interest coverage and estimated net cash accruals to total debt at 5.06 times and 0.27 times, respectively, for fiscal 2025, and this is likely to improve further over the medium term. Estimated Gearing remains comfortable at 0.97 times as of March 31, 2025.

Credit Risks:

• Exposure to Input Price Volatility :

  The company’s operating margins remain vulnerable to fluctuations in raw material and labour costs. Key inputs such as steel, cement, bitumen, stone, sand and aggregates constitute a significant portion of overall expenses. Labour charges, including subcontracting costs, also form a substantial share of the cost structure. Given their volatile nature, any sharp increase in these costs can directly impact profitability. Since raw material purchases account for the majority of total costs, margins are inherently exposed to such variations.

• Industry Competition :

  Although Ascent Engineers & Infrastructure Pvt. Ltd. has an established execution track record in private EPC contracting, its operations remain inherently exposed to the risks associated with a quotation-based business model. Since all projects are secured through competitive price quotations rather than formal tenders, the company’s order inflow is dependent on its ability to consistently bid at competitive rates while maintaining margins. Further, the company’s client base comprises private corporates and MNCs, making it susceptible to delays in technical clearances, issuance of work orders, and milestone-based payments. Consequently, revenue and profitability remain sensitive to competitive pricing pressure, client-driven approval cycles, and the overall demand outlook in the private commercial and industrial construction segment.

• High Customer Concentration Risk :

  The company also remains exposed to customer concentration risk, with a significant portion of the order book tied to a few key private clients, particularly Wipro, resulting in high dependence on repeat business from a limited client set. Any slowdown in order inflow, delays in project approvals, or changes in procurement strategy by these major customers could materially affect the company’s revenue visibility and cash flows.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Ascent Engineers & Infrastructures India Pvt Ltd. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive:
Substantial increase in scale of operations reflected in revenue of more than Rs. 175 Cr while maintaining the current profitability and credit profile.

Negative:
Decline in revenue or operating margin and TOL/TNW beyond 2x might lead to negative rating action.

LIQUIDITY INDICATORS - Adequate

The entity's liquidity remains adequate. It has cash and cash equivalents of Rs 4.36 Cr, and expected operational accruals of Rs 5.11 Cr against repayments of Rs 0.65 Cr. Liquidity is further supported by average fund-based bank limit utilization of ~54.63% with current ratio of 1.27 in FY 25 providing a sufficient cushion. The debt protection metrics of the company are at a comfortable level with ISCR and DSCR as of FY 2025, 5.06x and 3.35x times, respectively.
 

ABOUT THE ENTITY

Ascent Engineers and Infrastructures Pvt Ltd was incorporated in 2005, and later in 2012, it was reconstituted as a Private Limited Company. It undertakes EPC Infra Civil Construction projects, which provide civil construction and infrastructure services, including the construction of industrial buildings, factories, schools, colleges, religious places, storage tanks, industrial piping, building electrification, and other related work. It is a Chennai-based company, promoted by Mr. S. Srinivasan, Akshaya Srinivasan, and Amrutha Srinivasan.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	56.61	71.07	90.61
EBITDA	Rs.Crs.	7.24	4.37	7.40
PAT	Rs.Crs.	3.53	4.48	2.84
Tangible Net Worth	Rs.Crs.	14.24	17.72	19.56
Total Debt / Tangible Net Worth	Times	0.68	0.46	0.97
Current Ratio	Times	1.54	1.61	1.27

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for bank loan facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	12.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	30.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		42.00	(Rupees Forty Two Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Short Term Debt
• Approach to Financial Ratios
• Infrastructure Sector
• Engineering Procurement and Construction

Analytical Contacts
Shalaka Shashikant Keer Ratings Analyst shalaka.k@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com	Customer Support | CustSupport@brickwrokratings.com

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	Union Bank of India	Cash Credit - Sanctioned	10.00	_	10.00	Simple##
2	Union Bank of India	Cash Credit - Proposed	1.52	_	1.52	Simple##
3	Union Bank of India	Bank Guarantee - Sanctioned	_	30.00	30.00	Simple##
4	Union Bank of India	GECL - Sanctioned	0.48	_	0.48	Simple##
Total			12.00	30.00	42.00
TOTAL (Rupees Forty Two 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.