Press Release April 04, 2025 ORIENT CONSTRUCTIONS PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	0.25	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	19.25	ACUITE BBB- | Stable | Reaffirmed	-
Bank Loan Ratings	2.00	-	ACUITE A3 | Assigned
Bank Loan Ratings	56.00	-	ACUITE A3 | Reaffirmed
Total Outstanding	77.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and short term rating of ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 75.25 Cr. bank facilities of Orient Constructions Private Limited (OCPL). The outlook is ‘Stable’. Further, Acuité has assigned its long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and short term rating of ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 2.25 Cr. bank facilities of Orient Constructions Private Limited (OCPL). The outlook is ‘Stable’. Rationale for reaffirmation The rating reaffirmation takes into consideration OCPL’s established track record of operations, along with the extensive experience of its management in the civil construction industry and long-standing relationships with government authorities. The rating also reflects OCPL’s moderate order book position, which stood at Rs. 103.48 Cr. as of February 2025.  Further, the company’s operating income increased to Rs. 147.55 Cr. in FY2024 from Rs. 97.67 Cr. in FY2023. Furthermore, the rating considers OCPL’s moderate financial risk profile marked by moderate net worth, low gearing and moderate debt protection metrics. The rating, however, is constrained on account of its exposure to competitive and fragmented nature of industry coupled with tender based business, and working capital intensive nature of operation. Going forward, OCPL’s ability to sustain the improvement in its scale of operations while maintaining profitability will remain a key rating sensitivity.

About the Company

­I­ncorporated in 1993, Odisha based Orient Constructions Private Limited (OCPL) is engaged in construction of roads and bridges mainly for the state government of Orissa. Currently, the company is headed by Mr. Ashok Jalan, Mr. Saurav Singh, Mr. Yogesh Jalan, Mr. Manish Chaudhary and Mr Haresh Chandra Mishra.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone financial and business risk profile of Orient Constructions Private Limited to arrive at this rating.

Key Rating Drivers

Strengths

Long operational track record and experienced management  Established in 1993, Orient Constructions Private Limited (OCPL) has a long operational track record of around four decades in the civil construction industry, through their erstwhile partnership concern, Orient Constructions. Moreover, the key promoter of OCPL, Mr. Ashok Kumar Jalan has more than four decades of experience in the construction industry. Acuité believes that the long-standing experience of the promoter and the long track record of operations will aid the company to strengthen its business risk profile over the medium term. Steady growth in revenue and moderate order book position Orient Constructions Private Limited has achieved revenues of Rs. 147.55 Cr.  as compared to Rs. 97.67 Cr. in FY2023. In 9MFY25, the company reported revenues of approximately Rs. 88.09 Cr. However, the operating margin for FY2024 declined to 4.72%, from 5.64% in FY2023. Further, the company has an unexecuted order book position of Rs. 103.48 Cr. as of February 2025, which is expected to be executed in the 12-18 months thus providing moderate revenue visibility in the near-term. The company also has L1 projects worth Rs. 198.12 Cr. in hand as of December 2024. Acuité believes that the company’s ability to sustain growth in its order book position leading to steady growth in revenue will remain a key monitorable over the medium term. Moderate financial risk profile The company’s financial risk profile is moderate marked by moderate net worth, low gearing and moderate debt protection metrics. The tangible net worth  increased to Rs. 40.66 Cr. as on March 31, 2024, from Rs. 38.26 Cr. as on March 31, 2023, due to accretion of profits to reserves. The total debt of the company stood at Rs.18.02 Cr. as on March 31, 2024, as against Rs. 16.65 Cr. as on March 31, 2023. The gearing of the company stood low at 0.44 times as on March 31, 2024, as compared to 0.44 times as on March 31, 2023. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) of the company stood at 0.66 times as on March 31, 2024, as against 0.67 times as on March 31, 2023. Further, the debt protection metrics of the company stood moderate reflected by debt service coverage ratio of 1.53 times for FY24 as against 1.08 times for FY23. The interest coverage ratio stood at 3.31 times for FY24 as against 3.40 times for FY23. Net Cash Accruals/Total Debt (NCA/TD) stood at 0.24 times as on March 31, 2024, as compared to 0.24 times in the previous year. Acuité believes the financial risk profile of the company will continue to remain moderate.

Weaknesses

Improved albeit intensive nature of working capital operations. The working capital management of the company improved yet remain intensive in nature marked by improving Gross Current Assets (GCA) of 99 days as on March 31,2024 as compared to 158 days as on March 31,2023. The inventory holding period stood at 48 days in FY2024 as compared to 79 days in FY2023. The debtor days stood at 19 days in FY2024 as against 44 days in FY2023.  Further, the creditor days stood at 50 days in FY2024 as compared to 85 days in FY2023. Acuité believes that the working capital operations of the company will remain at similar levels given the nature of the industry over the medium term. Competitive and fragmented nature of industry coupled with tender based business The company is engaged as a civil contractor and the sector is marked by the presence of several mid to big size players. The company faces intense competition from the other players in the sectors. Risk becomes more pronounced as tendering is based on a minimum amount of bidding of contracts and hence the company must make bid for such tenders on competitive prices, which may affect the profitability of the company. However, this risk is mitigated to an extent as the company is operating in this environment for around a decade.

Rating Sensitivities

­Sustainable growth in scale of operations while maintaining profitability margin Deterioration in working capital cycle and any unplanned significant capex leading to deterioration of financial risk profile and liquidity.

Liquidity Position

Adequate

The company’s liquidity position is adequate marked by generation of sufficient net cash accruals of Rs. 4.36 Cr. in FY2024 as against its maturing debt obligations of Rs.  2.08 Cr. in the same tenure. In addition, it is expected to generate sufficient cash accrual against its maturing repayment obligations over the medium term. The cash and bank balances of the company stood at Rs. 1.80 Cr. as on March 31, 2024.The current ratio stood comfortable at 1.88 times as on March 31, 2024, as compared to 1.82 times as on March 31, 2023. Further, the working capital management of the group is intensive in nature marked by Gross Current Assets (GCA) of 99 days as on 31st March 2024, however, the reliance on working capital limits remained moderate with average utilisation of fund based limits at ~48 % over the past fourteen months ending January 2025, and non-fund based limit utilisation at ~78 % during the same period. Acuité believes that going forward the company will maintain adequate liquidity position owing to steady accruals and buffer available from unutilised working capital limits.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	147.55	97.67
PAT	Rs. Cr.	2.40	1.68
PAT Margin	(%)	1.63	1.72
Total Debt/Tangible Net Worth	Times	0.44	0.44
PBDIT/Interest	Times	3.31	3.40

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 01 Feb 2024 Bank Guarantee (BLR) Short Term 9.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 31.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 3.00 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 9.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 4.00 ACUITE A3 (Assigned) Working Capital Demand Loan Long Term 0.25 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 12.00 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 3.00 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 1.00 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 2.00 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 1.67 ACUITE BBB- (Reaffirmed & Withdrawn) 13 Feb 2023 Bank Guarantee (BLR) Short Term 9.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 9.00 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 27.00 ACUITE A3 (Reaffirmed) Bank Guarantee (BLR) Short Term 4.00 ACUITE A3 (Assigned) Working Capital Demand Loan (WCDL) Long Term 1.92 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 6.00 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 6.00 ACUITE BBB- | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Yes Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.00 Simple ACUITE A3 | Reaffirmed Punjab National Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 34.00 Simple ACUITE A3 | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 13.00 Simple ACUITE A3 | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A3 | Assigned Yes Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BBB- | Stable | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.25 Simple ACUITE BBB- | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BBB- | Stable | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.25 Simple ACUITE BBB- | Stable | Assigned

Contacts

Mohit Jain Senior Vice President - Rating Operations Kirti Berlia Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.