Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.55.00 Crs. of Athena Tradewinds Pvt. Ltd.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||||
|---|---|---|---|---|---|---|---|
| Non-Fund Based | |||||||
| Sub-Limit (Cash Credit) Sanctioned | (05.00) | Long Term | BWR | ||||
| Letter of Credit Sanctioned | 55.00 | Short Term | BWR | ||||
| Sub Total | 55.00 | ||||||
| Grand Total | 55.00 | (Rupees Fifty Five Crores Only) | |||||
BWR has assigned the long term rating of BWR BBB- with a Stable outlook and short term rating of BWR A3 to bank loan facilities of Athena Tradewinds Pvt. Ltd..BWR believes that the firm's 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 revenues and profit show sustained improvement. The rating outlook may be revised to 'Negative' if the revenues go down and profit margins show lower than expected figures.
KEY RATING DRIVERSBWR has essentially relied upon the audited financial statements of Athena Tradewinds Pvt. Ltd. of FY19, FY20, H1FY21 and projected financial statements of FY21, FY22, publicly available information and information / clarifications provided by the entity’s management. The rating draws strength from the vast business experience of the directors, established track of operations and above-average financial risk profile. However, the rating is constrained by the highly competitive and fragmented nature of the industry and profit margins
Going forward, the ability of the entity to achieve projected revenue & profitability margins and improve overall financial risk profile would be key rating sensitivities
Credit Strengths:
The directors Mr. Vivek Pathak and Mrs. Payal Pathak have an experience of more than two decades and one decade respectively commodity trading . The directors have hands on experience in managing and running commercial plants for sunoil, soya bean oil, CPO, CP Olein, Rice Bran and Groundnut oil.
The financial risk profile of the company is marked with a moderate net worth of Rs.33.42 cr in H1FY21. Low debt levels have resulted in low gearing of 0.01x. Coverage ratios with DSCR and ISCR are adequate at 3.63x and 3.70x respectively in FY20 and 12.66x and 12.59x in H1FY21. The current ratio is adequate at 1.92x in H1FY21. Profitability in H1FY21 has increased compared to FY20 and FY19 as reported through OPM of 6.77% and NPM of 6.29%.
The firm has established relationships with key suppliers and reputed customers like Cargill India Pvt Ltd, Bunge India Pvt Ltd,Tirumalla Oil Refinery Pvt Ltd.
The domestic edible oil industry is highly fragmented and competitive characterized by the presence of a large number of players and faces threats from cheaper substitutes.
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
Going forward the ability of the company to improve its scale of operations, overall financial risk profile will be the key sensitivities.
Positive: The ratings may be upgraded with improvement in scale of operations, capital structure, profit margins, and tangible net worth.
Negative: The ratings may be downgraded in case revenues of the company and profit substantially plunge from the current levels and gearing and debt service metrics deteriorate.
LIQUIDITY INDICATORS -
Strong
The liquidity is Strong as the net cash accruals in FY19 and FY20 are Rs 1.50 Cr and Rs 8.32 Vs the debt obligations of 0.08 and Rs 0.15 Cr respectively. The current ratio as of 31st March 2020 is 1.51x, cash and cash equivalents stood at Rs 16.30 Crs. The cash credit facility utilization is negligible.
ABOUT THE ENTITYAthena Tradewinds Pvt. Ltd. (ATPL) is a commodity-based company that trades in various agri-commodities with its niche expertise in Edible Oil – Crude Sunflower oil. The company is headquartered in Indore, India and its branch offices in Chennai, Mumbai and Kakinada.
| Standalone Financial Indicators (in ₹ crore) | Units | FY 20-21 (A) | FY 19-20 (A) | |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 229.81 | 364.21 | |
| EBITDA | Rs.Crs. | 15.57 | 11.30 | |
| PAT | Rs.Crs. | 14.46 | 8.10 | |
| Tangible Net Worth | Rs.Crs. | 33.42 | 19.26 | |
| Total Debt/Tangible Net Worth | Times | 0.01 | 0.01 | |
| Current Ratio | Times | 1.92 | 1.51 | |
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* A:Audited UA:Unaudited P:Provisional PROJ:Projected
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Note: These are latest available financial results. All ratios as per BWR's calculations; Amount in ₹ crore
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| CRA Name | Date | Amount | Rating |
|---|---|---|---|
| CRISIL | 28 Sep 2020 | 35.00 | CRISIL BB+/A4+ |
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.
| Analytical Contacts | |
|---|---|
|
Nagesh Sudhir Kadu Ratings Analyst Board : 202267456 nagesh.k@brickworkratings.com |
Sushil Kumar Chitkara Associate Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | |
| SL.No. | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | ||
|---|---|---|---|---|---|---|
| 1 | Letter of CreditSanctioned | _ | 55.00 | 55.00 | ||
| Sub-Limit (Cash Credit) Sanctioned | (5.00) | |||||
| Total | 55.00 | |||||
| TOTAL (Rupees Fifty Five Crores Only) | ||||||
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate | Maturity Date | ISIN Particulars |
|---|---|---|---|---|---|
| NA | NA | NA | NA | NA | NA |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| NA | NA | NA | NA |
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