RATING RATIONALE
08Aug2022

Whitelotus Industries Limited

Brickwork Ratings revises the ratings for the Bank Loan Facilities of Rs. 45.33 Crs. of Whitelotus Industries Limited

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(12 May 2022)
Present
Fund Based 48.77 45.33 Long Term BWR BB /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR BB + /Stable
Upgrade
Non Fund Based (1.58) (1.58) Short Term BWR A4
Downgrade/ISSUER NOT COOPERATING*
BWR A4 +
Upgrade
(0.95) (0.95)
(1.38) (1.38)
(0.83) (0.83)
(5.00) (1.22)
(5.05) (1.22)
(3.75) (0.00)
Grand Total 48.77 45.33 (Rupees Forty Five Crores and Thirty Three 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

Note: The rating is being removed from 'issuer not cooperating' category during the present review.


RATING ACTION / OUTLOOK

BWR has considered the standalone financials of the Company (Or hereinafter referred as "WLIPL") and essentially relied upon the audited financial statements up to FY21, Management certified provisional financials for FY22, Projected financials and publicly available information and clarifications provided by the entity management.

The rating revision is based on moderate scale of operation during the last fiscal and adequate liquidity position. Also, the rating favorably factor in the extensive experience of promoters in the packaging industry and catering to multiple industries. These strengths are partially offset by vulnerability to volatility in raw material prices. The ratings further consider the impact of covid pandemic on the business during FY21 and deterioration in gearing, however the tangible net worth remains at comfortable level. 

BWR believes that the business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

RATING SENSITIVITIES

Positive: Substantial growth in revenue and profitability leading to higher than expected cash accruals, improvement in the gearing from existing level.

Negative: De-growth in profitability resulting in lower-than-expected cash accruals, stretch in working capital cycle leading to adverse debt protection metrics, and further weakened liquidity profile of the company

LIQUIDITY INDICATORS - Adequate

The net cash accruals are marginally reduced from Rs.4.90 Crs in FY20 and Rs. 3.38 Crs in FY21. The current ratio is comfortable at 1.45x as on 31st March, 2021. Average cash credit utilization is around 88-90% in the past six months ending on 31st May 2022.Further, the working capital cycle is elongated from 102 to 153 days due to covid pandemic, which improved to 111 days on a provisional basis in FY22.Liquidity is supported by availment of covid line of emergency credit, moratorium benefit and opted for one time restructuring under the Resolution Framework scheme offered by the RBI. This will provide the liquidity cushion to run the business operations smoothly. 

ABOUT THE ENTITY

Whitelotus Industries Ltd was incorporated on 18th April 2011 for manufacturing complete flexible packaging products like laminates made of various combinations of Polyester, BOPP, Poly Metalized films, etc in several sizes and profiles. The corporate office and manufacturing facilities are located at Palsana, Surat, Gujarat. The total installed capacity is 5400 Metric Ton per anum for flexible packaging and 4200 Metric Ton per anum for Laquered Film.

KEY FINANCIAL INDICATORS
Standalone Financial Indicators (in ₹ crore) Units FY 20-21 (A) FY 19-20 (A)
Operating Revenue Rs.Crs. 93.41 111.36
EBITDA Rs.Crs. 9.71 9.09
PAT Rs.Crs. -0.02 1.45
Tangible Net Worth Rs.Crs. 17.34 17.31
Total Debt/TNW Times 3.56 3.31
Current Ratio Times 1.45 1.27
* A:Audited   UA:Unaudited   P:Provisional   PROJ:Projected
Note: These are latest available financial results. All ratios as per BWR's calculations; Amount in ₹ crore

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Acuite Ratings published the rating as ACUITE B+ (Stable), Issuer not co-operating dated April 28, 2021 for a total debt size of Rs. 35 Crs

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2022) 2022 (History) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 45.33
BWR BB+/Stable
(Upgrade)
12May2022
BWR BB Stable
(Downgrade/ISSUER NOT COOPERATING*)
24May2021
BWR BB+ Stable
(Reaffirmation)
16Mar2020
BWR BB+ Stable
(Upgrade)
NA
NA
Non Fund Based ST 0.00
NA
12May2022
BWR
()
NA
NA
NA
NA
NA
NA
NFB SubLimit ST (1.58)
BWR A4+
(Upgrade)
12May2022
BWR A4
(Downgrade/ISSUER NOT COOPERATING*)
24May2021
BWR A4+
(Reaffirmation)
16Mar2020
BWR A4+
(Assignment)
NA
NA
NFB SubLimit ST (0.95)
BWR A4+
(Upgrade)
NA
NA
NA
NA
NA
NA
NA
NA
NFB SubLimit ST (1.38)
BWR A4+
(Upgrade)
NA
NA
NA
NA
NA
NA
NA
NA
NFB SubLimit ST (0.83)
BWR A4+
(Upgrade)
NA
NA
NA
NA
NA
NA
NA
NA
NFB SubLimit ST (1.22)
BWR A4+
(Upgrade)
NA
NA
NA
NA
NA
NA
NA
NA
NFB SubLimit ST (1.22)
BWR A4+
(Upgrade)
NA
NA
NA
NA
NA
NA
NA
NA
Grand Total 45.33 (Rupees Forty Five Crores and Thirty Three 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.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Kunjal Dabhi

Rating Analyst Board : +91 79 66174046 / 47 kunjal.r@brickworkratings.com

Dileep Narayan Singh

Director dileep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Whitelotus Industries Limited
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 Bank of Baroda Term LoanSanctioned 4.02 _ 4.02
2 Bank of Baroda Working Capital Term LoanSanctioned _ _ 0.00
3 Bank of Baroda Cash CreditSanctioned 8.20 _ 8.20
Sub-Limit (Inland/Import LC ) Sanctioned (1.58)
Sub-Limit (PC/PCFC W/W FDBP/FUDBP) Sanctioned (0.95)
4 Bank of Baroda Covid -19 Emergency Line CreditSanctioned 4.05 _ 4.05
5 Punjab National Bank Covid -19 Emergency Line Credit 2.93 _ 2.93
6 Punjab National Bank Cash CreditSanctioned 11.75 _ 11.75
Sub-Limit (CC (BD)) Sanctioned (0.00)
Sub-Limit (Inland/Import LC ) Sanctioned (1.22)
Sub-Limit (PC/PCFC W/W FDBP/FUDBP) Sanctioned (1.22)
7 Punjab National Bank Funded Interest Term LoanSanctioned _ _ 0.00
8 Punjab National Bank Term LoanSanctioned 0.65 _ 0.65
9 Punjab National Bank Working Capital Term LoanSanctioned _ _ 0.00
10 Union Bank of India Cash CreditSanctioned 8.05 _ 8.05
Sub-Limit (Inland/Import LC ) Sanctioned (1.38)
Sub-Limit (PC/PCFC W/W FDBP/FUDBP) Sanctioned (0.83)
11 Union Bank of India Working Capital Term LoanSanctioned _ _ 0.00
12 Union Bank of India Term LoanSanctioned 2.75 _ 2.75
13 Union Bank of India Funded Interest Term LoanSanctioned _ _ 0.00
14 Union Bank of India Covid -19 Emergency Line CreditSanctioned 2.93 _ 2.93
Total 45.33 0.00 45.33
TOTAL (Rupees Forty Five Crores and Thirty Three lakhs Only)
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