Brickwork Ratings reaffirms the rating for the Bank Loan Facilities of Rs. 27.10 Crs. of TMI Healthcare Pvt Ltd
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (24 Nov 2020) |
Present | ||
| Fund Based | 18.00 | 27.10 | Long Term |
BWR BB/Stable
Reaffirmation |
BWR BB
/Stable Reaffirmation |
| Grand Total | 18.00 | 27.10 | (Rupees Twenty Seven Crores and Ten lakhs Only) | ||
Credit Strengths:
TMIHPL has recorded slight dip in the revenue generated in FY21. However TMIHPL has been able to maintain the topline despite the operations being effected adversely due to Covid 19 pandemic. As per FY21(Prov. )financials, TMIHPL has achieved revenue to the tune of Rs 60 Crores for 10 months ended January 2022. TMIHPL is planning for CAPEX to the tune of Rs 5.2 Crores which will improve the overall functioning of the hospitals. The Average Revenue Per Bed has also increased by 23% to Rs 22,000 in FY22 as against Rs 17,000 generated in FY21.
Pratithi Investment Trust has picked up around 52% stake in the shares of TMIHPL and is in the process of infusing funds into the company which will support the liquidity position of TMIHPL and improve its financial risk profile.
TMIHPL has experienced team of directors at its helm who has more than a decade of experience in the healthcare industry.
The hospitals face the risk of geographical concentration since all the hospitals are located in Bangalore, Karnataka.
The financial risk profile remains weak with gearing at 9.41 times as on 31 March 2021 and ISCR and DSCR at -1.24 times and -0.32 times respectively in FY21 indicating inadequate debt repayment capacity. The debt repayment is made with the help of the infusion of funds by the promoters. The gearing is expected to improve to 1.30 times as on 31 March 2022 (Proj.) due to increase in equity and repayment of debt. The ISCR and DSCR is also expected to improve respectively to 3.34 times and 2.23 times as in FY22(Proj.). The current ratio remains low at 0.60 times as on 31 March 2021 indicating inadequate liquidity position of the company. PAT remains negatives in FY21 and is expected to become positive in FY22 (Proj.). The Cash Conversion Cycle remains negative due to high creditor days.
The healthcare industry is a highly competitive industry and the hospitals face competition from several established players in the industry.
Liquidity of the company remains stretched with the current ratio at 0.60 times as on 31 March 2021. The current ratio is expecting to improve slightly to 0.65 times as per provisional FY22 figures as on 31 December 2021. PAT remains negative in FY20, FY21 and as per the provisional FY22 figures. However PAT is expected to become positive as per projected FY22 financials. NCA remains negative indicating stretched liquidity position of the company and is expected to become positive as per FY22 projections. Cash and Bank Balances remain low at Rs 0.64 Crores as on 31 March 2021 and is expected to improve to Rs 2.97 Crores as on 31 March 2022. OD limit utilization remains average at 62.3%. The debt protection metrics, ISCR and DSCR remains negative and is expected to improve to 3.43 times and 2.23 times respectively in FY22. Cash Conversion Cycle remains negative due to high payable days.
ABOUT THE ENTITYNil
| Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 27.10 |
BWR BB/Stable
(Reaffirmation) |
NA |
NA
|
24Nov2020 |
BWR BBStable
(Reaffirmation) |
NA |
NA
|
| 0.00 |
NA
|
NA |
NA
|
21Jan2020 |
BWR BBStable
(Downgrade/ISSUER NOT COOPERATING*) |
NA |
NA
|
||
| Grand Total | 27.10 | (Rupees Twenty Seven Crores and Ten 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.
Hyperlink/Reference to applicable Criteria| Analytical Contacts | |
|---|---|
|
Nimmy Anand Ratings Analyst nimmy.a@brickworkratings.com |
Nagaraj K Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
|---|---|---|---|---|---|---|
| 1 | Federal Bank | Term LoanOut-standing | _ | _ | 0.00 | |
| 2 | Federal Bank | Term LoanOut-standing | _ | _ | 0.00 | |
| 3 | Federal Bank | Term LoanOut-standing | _ | _ | 0.00 | |
| 4 | Federal Bank | Term LoanOut-standing | _ | _ | 0.00 | |
| 5 | Federal Bank | Term LoanOut-standing | _ | _ | 0.00 | |
| 6 | Federal Bank | Term LoanOut-standing | _ | _ | 0.00 | |
| 7 | Federal Bank | Term LoanProposed | _ | _ | 0.00 | |
| 8 | Federal Bank | Cash CreditSanctioned | _ | _ | 0.00 | |
| 9 | HDFC Bank | Over DraftSanctioned | 1.80 | _ | 1.80 | |
| 10 | HDFC Bank | Over DraftSanctioned | 0.20 | _ | 0.20 | |
| 11 | HDFC Bank | Over DraftSanctioned | 0.50 | _ | 0.50 | |
| 12 | HDFC Bank | Term LoanOut-standing | 1.21 | _ | 1.21 | |
| 13 | HDFC Bank | Term LoanOut-standing | 0.44 | _ | 0.44 | |
| 14 | HDFC Bank | Term LoanOut-standing | 1.36 | _ | 1.36 | |
| 15 | HDFC Bank | Term LoanOut-standing | 0.56 | _ | 0.56 | |
| 16 | HDFC Bank | Term LoanOut-standing | 1.00 | _ | 1.00 | |
| 17 | HDFC Bank | Term LoanOut-standing | 0.03 | _ | 0.03 | |
| 18 | Kotak Mahindra Bank | Term LoanSanctioned | 5.20 | _ | 5.20 | |
| 19 | Kotak Mahindra Bank | Over DraftSanctioned | 14.80 | _ | 14.80 | |
| Total | 27.10 | 0.00 | 27.10 | |||
| TOTAL (Rupees Twenty Seven Crores and Ten lakhs Only) | ||||||
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