RATING RATIONALE
18Nov2025
Suraj Construction Company
Brickwork Ratings assigns the long-term and short-term ratings at "BWR BBB-/Stable" and "BWR A3" for the Bank Loan Facilities of Rs. 71.00 Crs. of Suraj Construction Company
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 8.00 | Long Term |
BWR BBB -
/Stable Assignment |
|
| (7.00) | Short Term |
BWR A3
Assignment |
||
| (5.00) | ||||
| Non Fund Based | 48.00 | Long Term |
BWR BBB -
/Stable Assignment |
|
| (2.00) | ||||
| (2.00) | ||||
| (6.00) | ||||
| 15.00 | Short Term |
BWR A3
Assignment |
||
| (20.50) | ||||
| (4.00) | ||||
| (6.00) | ||||
| (2.00) | ||||
| Grand Total | 71.00 | (Rupees Seventy One Crores Only) | ||
**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. 71.00 Crores of Suraj Construction Company.
The ratings assigned for the bank facilities of Suraj Construction Company continue to drive strength from experienced partners and management, achievable profitability, adequate liquidity and moderate financial risk profile of the firm and BWR has relied upon the FY 23, FY 24 and FY 25 Audited.
The rating outlook has been assigned as "Stable" as BWR believes that Suraj Construction Company 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 DRIVERSCredit Strengths:
-
Strong Financial Profile :
SSC booked an operating income of Rs. 181.50 Crores in FY25, other profitability and solvency ratios are at healthy position. Current ratio has been consistently maintained above 1.33x levels over the period. The firm reported comfortable credit profile over the years as it reported Interest Coverage Ratio of above 1.40x during FYs 22-25, while Total Debt/TNW also remained comfortable at below unity during FY25 at 0.52 times.
-
YOY increasing TNW :
The TNW of the company has been significantly increasing on a Y-O-Y basis and stood at Rs.72.64 Crores in FY25 as compared to Rs. 14.29 Crores in FY24 that's 408% growth due to infusion of capital by partners.
-
Long track record of partners and experienced management team of the firm :
Suraj Construction Company was established in 2004 as a partnership firm at Hisar, Haryana. The firm is engaged in civil construction services that primarily includes Roads Construction (Bitumen & concrete Roads), Civil Construction work (Buildings & God owns) and various Turnkey projects. Mr. Satish Kumar is the main partner having more than two decades of experience and other partners being Mr. Suraj Kumar and Mr. Mukesh having more than a decade of experience. They are also Specialized in Civil Work containing National Highways Roads and Bridges and State Highways Roads Having Experience of More Than 30 Years. They are EPC Contractors and the firm is presently registered as Class - I Contractor.
-
Project Execution Risk :
The firm remains exposed to the inherent project execution risks associated with the construction industry
-
Competition in Industry :
The industry is fragmented, with stiff competition from organized and unorganized players in the vicinity which might impact the revenues and profitability
-
Tender Based Nature of Business :
The firm operates in a tender based business where revenue generation is dependent on successful bidding and acquisition of tenders. However, the long association of the company with their customers and suppliers, and their presence in the industry for more than 20 years, enables them to bid for high value tenders and secure the orders
For arriving at its ratings, BWR has considered the standalone performance of Suraj Construction Company BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).
RATING SENSITIVITIES
Going forward, the firm's ability to manage the working capital efficiently, improve the scale of operations, and improve and maintain profitability, along with the debt servicing capability and liquidity, will be key rating sensitive.
Positives: A rating upgrade could be driven by achieving sustained growth in revenues as per the projections, along with consistent improvement in profitability margins, with the operating margin rising above 8% on a sustained basis. Successful realization of payments given govt. contracts.
Negatives: A rating downgrade may be triggered by an inability to achieve the projected revenue and profit growth, with the operating margin dropping below 4%. An increase in Total Debt/TNW above 1.0x would indicate higher leverage risk. Any increase in Debt Equity Ratio more than 1.
LIQUIDITY INDICATORS - Adequate
Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and moderate cash balance of Rs. 11.38 Crores. Its capex requirements are modular and expected to be funded using debt of Rs. 17.14 Crores for which it has sufficient headroom. Its bank limits are utilized to the extent of 75% and has sought enhancement in bank lines, supported by the above unity current ratio.
The firm has net cash accruals of Rs. 11.18 Crores as against the CPLTD of Rs. 4.57 Crores in FY25. The Net Cash Accruals are expected to increase to Rs. 14.43 Crores in FY26, where the CPLTD will be around Rs. 4.57 Crores. The firm has a Cash and Bank Balance of Rs. 11.38 Crores. The Current Ratio of the firm stood moderate at 1.53 times in FY25.Debt protection metrics remained comfortable — ISCR at 2.89 times and DSCR at 1.72 times in FY25. The firm’s EBITDA stood at Rs. 13.42 Crores in FY25 (audited financials) against interest and finance charges of Rs. 4.65 Crores. The EBITDA level remained more than adequate to service the interest obligations year on year. The company has no long-term loans at present, which further indicates an adequate liquidity position. The tangible net worth of the firm stood at Rs. 72.64 Crores in FY25.Hence, the liquidity position of the firm is adequate.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Industrials | Construction | Construction | Civil Construction |
Suraj Construction Company was established in 2004 as a partnership firm at Hisar, Haryana. The firm is engaged in civil construction services that primarily includes Roads Construction (Bitumen & concrete Roads), Civil Construction work (Buildings & God owns) and various Turnkey projects. Mr. Satish Kumar is the main partner having more than two decades of experience and other partners being Mr. Suraj Kumar and Mr. Mukesh having more than a decade of experience. They are also Specialized in Civil Work containing National Highways Roads and Bridges and State Highways Roads Having Experience of More Than 30 Years. They are EPC Contractors and the firm is presently registered as Class - I Contractor.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 22 - 23 (Audited) |
FY 23 - 24 (Audited) |
FY 24 - 25 (Audited) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 73.08 | 150.40 | 181.50 |
| EBITDA | Rs.Crs. | 5.34 | 5.81 | 13.42 |
| PAT | Rs.Crs. | 3.14 | 5.12 | 9.14 |
| Tangible Net Worth | Rs.Crs. | 11.50 | 14.29 | 72.64 |
| Total Debt / Tangible Net Worth | Times | 0.78 | 2.15 | 0.52 |
| Current Ratio | Times | 1.23 | 1.36 | 1.53 |
The terms of sanction include standard covenants normally stipulated for such facilities.
As per the sanction conditions of the Bank, the unsecured loans shall not be withdrawn until the closure of the loan and shall remain subordinated to the term loans.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
ANY OTHER INFORMATIONNo Other Information.
RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2025) | 2024 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 8.00 |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| FB SubLimit | ST | (7.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (5.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Non Fund Based | LT | 48.00 |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| NFB SubLimit | LT | (2.00) |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (2.00) |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| (6.00) |
BWR BBB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Non Fund Based | ST | 15.00 |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| NFB SubLimit | ST | (20.50) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (4.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| (6.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| (2.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Grand Total | 71.00 | (Rupees Seventy One Crores Only) | |||||||
- General Criteria
- Approach to Financial Ratios
- Short Term Debt
- Engineering Procurement and Construction
| Analytical Contacts | |
|---|---|
|
R Sriranjani Rating Analyst sriranjani.r@brickworkratings.com |
Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | Customer Support | CustSupport@brickwrokratings.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 | Bank GuaranteeSanctioned | _ | 15.00 | 15.00 | Simple## |
| Sub-Limit (Bank Guarantee) Sanctioned | (2.00) | |||||
| 2 | HDFC Bank | OverdraftSanctioned | 1.00 | _ | 1.00 | Simple## |
| 3 | Kotak Mahindra Bank | OverdraftSanctioned | 5.00 | _ | 5.00 | Simple## |
| Sub-Limit (Working Capital Demand Loan) Sanctioned | (5.00) | |||||
| 4 | Kotak Mahindra Bank | Bank GuaranteeSanctioned | 25.00 | _ | 25.00 | Simple## |
| Sub-Limit (Counter Bank Guarantee) Sanctioned | (20.50) | |||||
| Sub-Limit (Inland Letter of Credit) Sanctioned | (4.00) | |||||
| Sub-Limit (Working Capital Demand Loan) Sanctioned | (7.00) | |||||
| 5 | Yes Bank | Bank GuaranteeSanctioned | 23.00 | _ | 23.00 | Simple## |
| Sub-Limit (Bank Guarantee) Sanctioned | (6.00) | |||||
| Sub-Limit (Letter of Credit) Sanctioned | (6.00) | |||||
| 6 | Yes Bank | Over DraftSanctioned | 2.00 | _ | 2.00 | Simple## |
| Sub-Limit (Bank Guarantee) Sanctioned | (2.00) | |||||
| Sub-Limit (Bank Guarantee) Sanctioned | (2.00) | |||||
| Total | 56.00 | 15.00 | 71.00 | |||
| TOTAL (Rupees Seventy One Crores 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.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
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