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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 20.00 | ACUITE BBB | Stable | Reaffirmed | - |
| Bank Loan Ratings | 100.00 | - | ACUITE A3+ | Reaffirmed |
| Total Outstanding | 120.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and the short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) to the Rs.120.00 crore bank facilities of Sailaja Commercial Construction Private Limited (SCCPL). The outlook is ‘Stable’.
Rationale for rating The rating considers improvement in operating performance in FY2025(Prov.). Further, the company has moderate unexecuted order book of Rs.594.17 Cr as on September 30, 2025 providing sound revenue visibility over the near to medium term. The rating also factors moderate financial risk profile and adequate liquidity position of the company backed by steady cash accruals against maturing debt obligations. The rating also draws comfort from the established operations with experienced management of the company. However, these strengths are partially offset by intensive working capital nature of operations, high geographical concentration in order book and inherent risks in tender based nature of business in an intensely competitive construction industry. |
| About the Company |
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Sailaja Commercial Construction Private Limited (SCCPL) was incorporated in the year 2013 at Guwahati, Assam. Currently, SCCPL is engaged in undertaking civil construction projects awarded by Assam Public Works Department (APWD) including PWD (Roads), PWD (Building), PWD (NH Works). PWD (NEC Works), PWD (ARIASP & RIDF), Ministry of Road Transport & Highways, (Govt. of India). It primarily undertakes civil construction of roads, bridges, buildings, culverts, sewage etc. Mrs. Ankita Chaliha Goswami & Mr. Uday Aditya Goswami are the directors of the company.
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| Unsupported Rating |
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Not applicable
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| Analytical Approach |
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Acuite has considered standalone business and financial risk profile of SCCPL while arriving at the rating.
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| Key Rating Drivers |
| Strengths |
| Long track record of operations, experienced management and reputed clientele base
The company has an established presence in this sector and has long & healthy relationship with its customers for more than a decade. The timely execution of the projects has helped the company to improve its market presence in state of Assam. The directors of the company Mr. Uday Aditya Goswami and Mrs. Ankita Chaliha Goswami are having more than two decades of experience in similar industry. Further, the company mainly caters to the government entity like Assam Public Works Department (APWD) including PWD(Roads), PWD(Building), PWD (NH Works), PWD (NEC Works), PWD(ARIASP&RIDF), Ministry of Road Transport & Highways, (Govt. of India) among others which will benefit the company to mitigate the counter party risk. Acuité believes that the company will continue to benefit from its promoter’s extensive industry experience and established relationship with customers over the medium term. Improving operating performance SCCPL has recorded improvement in the operating income and achieved revenue of Rs 229.27 Cr in FY2025(Prov.) as compared to Rs 201.86 Cr in FY2024 posting a growth of 13.58 percent on account of better execution of high value order. Further it has an unexecuted order book of around Rs 594.17 Cr (2.59 times of FY25 revenues) as on September 30, 2025, which is to be completed in the coming 12 to 24 months thereby providing sound revenue visibility in near to medium term. The company has achieved revenue of Rs 80.30 Cr till October-25. The operating margin of the company also improved and stood healthy at 14.52 percent in FY2025(Prov.) as compared to 12.94 percent in FY2024 on account of augmentation in scale of operations coupled with control in overhead expense to some extent. The PAT margins of the company also improved and stood at 6.75 percent in FY2025(Prov.) on account of healthy operating margins coupled with increase in other income (cessation of liability) albeit increase in finance and depreciation cost.Acuité believes that, going forward, the sustainability of the healthy margins will remain a key monitorable. Moderate financial risk profile The financial risk profile of the company is moderate marked by moderate adjusted net worth, comfortable gearing and debt protection metrics. The tangible net worth of the company increased to Rs 93.98 Cr as on March 31,2025(Prov.) as compared to Rs 75.83 Cr as on March 31,2024 mainly on account of accretion to reserves. Further, networth includes unsecured loan of Rs.18.53 Cr from the promoters as on March 31,2025(Prov.) as quasi equity, as the same is subordinated with bank debt. The gearing stood comfortable at 0.60 times as on March 31,2025(Prov.) despite increase in debt (long term as well as short term) for purchase of equipment and working capital requirement for execution of order. Further, the comfortable debt protection metrics of the company is marked by moderate interest coverage ratio; stood at 4.95 times and debt service coverage ratio (DSCR) at 1.93 times as on March 31, 2025(Prov.). Acuité believes that going forward the financial risk profile will improve over the medium term backed by steady net cash accruals and in absence of major capex in near terms. |
| Weaknesses |
| Working capital intensive nature of operation
The operation of the company is working capital intensive marked by high gross current asset days i.e. 226 days as on March 31,2025(Prov.) owing to high debtors holding and balance lying in other current assets (advance to supplier/contractor & balances with revenue authority). The debtor receivables though improved but stood high at 112 days as on March 31,2025(Prov.) as compared to 132 days as on March 31,2024 since majority of the billing is done in the last quarter, especially during March 25 and the same had been recovered in the current fiscal year. Acuité believes that the working capital operations of the company will remain around similar levels over the medium term based on the nature of business. Inherent risks in tender-based businesses coupled with geographical concentration risk and intense competition in the industry Intense competition from several players, and exposure to risks arising from dependence on tenders. Growth in revenue and profitability depends on the company's ability to bid successfully and executes order within stipulated time frame. The company derives majority of revenue from government projects limited to Assam thereby reflecting higher geographic concentration risk. Moreover, the unexecuted order book of the company is also geographically limited to state of Assam only. Further 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. Acuité believes that this risk is mitigated to some extent as the company is operating in this industry for more than decade. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The liquidity position of the company is adequate marked by stable net cash accruals of Rs.26.14 Cr as on March 31, 2025 (Prov.) as against long term debt repayment of Rs. 8.01 Cr over the same period. Further the net cash accruals are expected to remain in the range of Rs 25.00 Cr to 29.00 Cr as against long term debt repayment of Rs 8.00 Cr to 10.00 Cr in near to medium terms. The unencumbered cash and bank balances stood at Rs. 17.34 Cr as on March 31, 2025 (Prov.). The current ratio stood moderate at 1.27 times as on March 31, 2025 (Prov.). The average fund-based bank limit utilization stood moderate at 88.46 percent & non-fund-based bank limit utilization stood at 47.06 percent over the last six months ended, September 2025.
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| Outlook-Stable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 229.27 | 201.86 |
| PAT | Rs. Cr. | 15.48 | 11.33 |
| PAT Margin | (%) | 6.75 | 5.61 |
| Total Debt/Tangible Net Worth | Times | 0.60 | 0.55 |
| PBDIT/Interest | Times | 4.95 | 4.97 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any other information |
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None
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| Applicable Criteria |
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• 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 |
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