Prem Textiles (International) Private Limited

Brickwork Ratings assigns the long-term and short-term ratings to BWR BBB/Stable and BWR A3 for the Bank Loan Facilities of Rs. 78.40 Crs. of Prem Textiles (International) Private Limited

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	74.95	Long Term	BWR BBB /Stable Assignment
	(53.00)
Non Fund Based	3.45	Short Term	BWR A3 Assignment
Grand Total	78.40	(Rupees Seventy Eight Crores and Forty 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 has assigned the long-term and short-term ratings of BWR BBB/Stable and BWR A3 for the bank loan facilities of Rs. 78.40 Crores of Prem Textiles (International) Private Limited.

The ratings assigned to the bank facilities of Prem Textiles (International) Private Limited. continue to derive strength from its improving track record of operations and the extensive experience of the company.The rating also factors in the growing scale of operations and profitability, a healthy financial risk profile, and an adequate liquidity position. The assessment is based on the audited financial statements of FY 2023, FY 2024, and FY 2025.

The rating outlook has been assigned as "Stable" as BWR believes that Prem Textiles (International) Private Limited. 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 revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

• Locational Advantage :

  The company/Firm is located in Indore cluster and thus has a competitive advantage in terms of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective.

• Debt Protection Metrics :

  DSCR and ISCR of the company stand at 1.70 and 2.39 respectively in FY 25 indicating company’s adequacy to meet its debt obligations

Credit Risks:

• Competition in the Industry :

  Entry barriers in the industry are low on account of limited capital and technology requirement and also low differentiation in the end product leading to intense competition and limiting the pricing power resulting in low profitability

• Industry cyclicality and market risks: :

  The company’s heavy reliance on imports makes it vulnerable to global price volatility, foreign exchange fluctuations, and potential supply chain disruptions, which may impact margins and operational stability.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, Brickwork Ratings has applied its rating methodology as detailed in the Rating criteria below(hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward the Entity’s ability to improve the scale of operations, improve and maintain profitability, the debt servicing capability & liquidity ,competition of e-commerce industry and manage its working capital efficiently will be the key rating sensitivities.

Positive :

• Sustained growth in Total Operating Income, along with improvement in operating margin to above ~7.5–8.0%, leading to higher cash accruals.
• Improvement in liquidity and coverage indicators, with ISCR above 3.0x, and DSCR above 1.80x.

Negative :

• Decline in revenue below Rs.290 crs and/or substantial deterioration in operating margin.
• Deterioration in debt protection metrics, with ISCR falling below 2.0x or DSCR below 1.50x.

LIQUIDITY INDICATORS - Adequate

The company maintains an adequate liquidity position, supported by steady net cash accruals of Rs. 9.25 crore in FY2024–25, Rs. 13.35 crore in FY2025–26, and Rs. 13.35 crore in FY2026–27, which are sufficient to meet its CPLTD repayments of Rs. 6.62 crore in FY2025–26, Rs. 4.51 crore in FY2026–27, and Rs. 4.08 crore in FY2027–28. The current ratio stood at 1.23×, indicating a comfortable short-term liquidity position. The company’s debt servicing capability remains healthy, with an ISCR of 2.39× in FY2024–25 and a DSCR of 1.70×. Although working capital utilization remains low, with average CC utilization at around 0.09% from SBI and PC limit utilization at around 60%, there have been no instances of limit over utilization beyond the stipulated 180 days. Additionally, utilization from HDFC Bank remains minimal at around 0.73%. Further, a tangible net worth of Rs. 61.63 crore in FY2024–25 provides additional financial strength and financial flexibility to the company.

ABOUT THE ENTITY

Prem Textiles, which has been operating in the textile industry since 1973, was incorporated in 2006 as a partnership firm and later converted into a private limited company in 2008. The company is engaged in integrated textile manufacturing, with its registered office in Bhanpura, Madhya Pradesh, and its corporate office in Indore.

The company operates as a composite textile mill, undertaking activities such as cotton yarn manufacturing, weaving, dyeing, processing, and export of bed linen, with facilities across Barwaha, Indore, and Bhiwandi. It also procures yarn/fabric externally and undertakes job work to meet export demand.

Prem Textiles is largely export-oriented, with around 78% of production exported to markets including the USA, Europe, Israel, Australia, and Canada. 

Shri Subhash Chandra Jain has over 50 years of experience in textile manufacturing and has been managing overall operations since 1973, with good exposure to global markets and technology. Shri Saurabh Jain has been associated with the company since 2009 and handles manufacturing and sales. He has an MBA in International Business and experience in export marketing.

Sl.No	Units Name	Location
1	Spinning Unit (Barwaha)	M.P.
2	Process Unit (Barwaha)	M.P.
3	Spinning Unit (Indore on Rent)	M.P.
4	Process Unit (Indore)	M.P.
5	Sizing Unit (Indore)	M.P.
6	Stitching Unit (Indore)	M.P.
7	Stitching Unit (Bhiwandi) Owrned	M.H.

ESG Profile

The company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: Environmental risks are driven by high water usage, waste generation, and reliance on energy-intensive processes, making disclosures on water consumption , waste-management practices, renewable energy share , and emissions levels  particularly important.

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix , safety performance , and training initiatives offering insights into operational resilience.

Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms, and risk-management practices.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	285.50	253.75	282.37
EBITDA	Rs.Crs.	15.34	16.71	17.37
PAT	Rs.Crs.	5.78	3.58	4.57
Tangible Net Worth	Rs.Crs.	53.26	55.96	61.63
Total Debt / Tangible Net Worth	Times	1.12	1.50	1.32
Current Ratio	Times	1.19	1.16	1.23

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

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

Facilities	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	74.95	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(53.00)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	3.45	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		78.40	(Rupees Seventy Eight Crores and Forty lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Manufacturing Company

Analytical Contacts
Gokul D Rating Analyst gokul.d@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.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	HDFC Bank	Working Capital Term Loan	2.85	_	2.85	Simple##
2	HDFC Bank	Working Capital Term Loan	5.13	_	5.13	Simple##
3	HDFC Bank	Working Capital Term Loan	1.10	_	1.10	Simple##
4	HDFC Bank	Over Draft	0.50	_	0.50	Simple##
5	State Bank Of India (SBI)	Bank Guarantee	_	0.25	0.25	Simple##
6	State Bank Of India (SBI)	Credit Exposure Limit (CEL)	_	3.20	3.20	Simple##
7	State Bank Of India (SBI)	Emergency Credit Line Guarantee Scheme (ECLGS)	8.49	_	8.49	Simple##
8	State Bank Of India (SBI)	GECL	1.63	_	1.63	Simple##
9	State Bank Of India (SBI)	Standby Line of Credit - EPC	2.25	_	2.25	Simple##
10	State Bank Of India (SBI)	Cash Credit	53.00	_	53.00	Simple##
	Sub-Limit (Export Packing Credit ) - Sanctioned	(53.00)
Total			74.95	3.45	78.40
TOTAL (Rupees Seventy Eight Crores and Forty lakhs 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.