RATING RATIONALE
09Jul2021

Imperial Constrafin Pvt. Ltd.

Brickwork Ratings upgrades the long term rating while reaffirms the short term rating for the Bank Loan Facilities of Rs. 44.94 Crs. of Imperial Constrafin Pvt. Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(26 Apr 2021)
Present
Fund Based 25.00 19.94 Long Term BWR B+ (Stable) Downgraded ISSUER NOT COOPERATING*
BWR BB - /Stable
Upgrade
Non Fund Based 25.00 25.00 Short Term BWR A4 Downgraded ISSUER NOT COOPERATING*
BWR A4
Reaffirmation
Grand Total 50.00 44.94 (Rupees Forty Four Crores and Ninety Four 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

The ratings reflect the promoters’ experience in civil construction business, established operational track record, revenue visibility supported by moderate order book position and moderate financial risk profile. These strengths are partially set off by project implementation risks of ongoing projects, concentration risk and the fragmented and highly competitive nature of the industry. 

The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. BWR expects that Imperial Constrafin Pvt Ltd’s business risk profile will be maintained over the medium term. The outlook may be revised to Positive if the company achieves projected revenue, sustains profitability and Improves debtor position while maintaining its moderate financial risk profile. The outlook may be revised to Negative if any significant delays in execution of key orders or slowdown in new order inflows adversely impacts the company’s revenues and profitability or if there is deterioration in its financial risk or liquidity position.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, Brickwork Ratings has adopted a standalone approach and applied its rating methodology as detailed in the Rating criteria below. The Company has no subsidiary.

1. General Criteria (link - http://www.brickworkratings.com/download/Criteria-GeneralCriteria.pdf)

2. Approach to Financial Ratios (link - http://www.brickworkratings.com/download/Criteria-FinancialRatios.pdf)

3. https://www.brickworkratings.com/download/Criteria%20%E2%80%93EPC-Companies-Web-Version_1.4.pdf

4. Short Term Debt (link - https://www.brickworkratings.com/download/Criteria-ShortTermDebt.pdf)

LIQUIDITY INDICATORS - Stretched

Liquidity of the Company is stretched marked by high working capital loan utilization level of 88.18% in the past three months ended May 2021 and receivable days of 612 days and 168 days, respectively as on 31 March 2021 and 2020. Debtors were high at Rs 57.88 Crs and Rs 47.95 Crs, respectively as on 31 March 2021 and 2020. Current ratios were moderate at above 1.0 times, in the last three years ended 31 March 2021. The Company has not availed the Covid 19 related RBI moratorium package. The Net Cash Accruals will be adequate for CPLTD (CPLTD of Term loan from Bank) of Rs0.72 Crs in FY22 and working capital utilization is expected to be high in FY22.

ABOUT THE ENTITY

Imperial Constrafin Pvt Ltd (or ICPL) was incorporated in 1996 at Bangalore, Karnataka. The company undertakes sub contract work such as construction of bridges, remodeling of storm water drains etc. It also undertakes construction for corporates such as construction of commercial space for software development centres. The company undertakes maintenance work, improvement and value addition for software and industrial buildings. 

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 19-20
(Audited)
FY 18-19
(Audited)
Operating Revenue Rs.Crs. 69.98 86.82
EBITDA Rs.Crs. 12.91 10.97
PAT Rs.Crs. 7.86 7.04
Tangible Net Worth Rs.Crs. 35.56 27.70
Total Debt/Tangible Net Worth Times 1.20 1.13
Current Ratio Times 1.15 1.05

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 19.94
BWR BB-/Stable
(Upgrade)
26Apr2021
BWR B+ (Stable) Downgraded ISSUER NOT COOPERATING*
()
NA
NA
12Nov2019
BWR BB/Stable Assigned
()
NA
NA
Non Fund Based ST 25.00
BWR A4
(Reaffirmation)
26Apr2021
BWR A4 Downgraded ISSUER NOT COOPERATING*
()
NA
NA
12Nov2019
BWR A4+ Assigned
()
NA
NA
Grand Total 44.94 (Rupees Forty Four Crores and Ninety Four 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.

Analytical Contacts

Thakur Trinath Prasad Pani

Rating Analyst thakur.tp@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Imperial Constrafin 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 Open Cash Credit / Cash Credit (Hypothecation/Pledge)Sanctioned 7.50 _ 7.50
2 Canara Bank Open Cash Credit / Cash Credit (Hypothecation/Pledge)Proposed 6.50 _ 6.50
3 Canara Bank Bank GuaranteeSanctioned _ 15.00 15.00
4 Canara Bank Bank GuaranteeProposed _ 10.00 10.00
5 Canara Bank COVID Funded Interest Term LoanOut-standing 0.67 _ 0.67
6 Canara Bank GECLOut-standing 5.27 _ 5.27
Total 19.94 25.00 44.94
TOTAL (Rupees Forty Four Crores and Ninety Four lakhs Only)
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