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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 42.00 | ACUITE BB+ | Reaffirmed & Withdrawn | - |
| Bank Loan Ratings | 47.25 | - | ACUITE A4+ | Reaffirmed & Withdrawn |
| Bank Loan Ratings | 10.75 | - | Not Applicable | Withdrawn |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 100.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed and withdrawn its long-term rating of 'ACUITE BB+' (read as ACUITE double B plus) on Rs. 42.00 Cr. bank facilities and short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) on Rs. 47.25 Cr. bank facilities of Bindal Developers (BD). The rating is being withdrawn on account of request received from the company, and NOC (No Objection Certificate) received from the bankers.
Further, Acuité has withdrawn the proposed short-term rating on the Rs. 10.75 crore bank facilities of Bindal Developers (BD). The rating is being withdrawn on account of request received from the company as it was a proposed facility. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. |
| About the Company |
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Incorporated in 2007, Bindal Developers (BD) is a proprietorship concern with Mr. Narsingh Bindal as a proprietor. It is engaged in civil construction & other ancillary activity. It is mainly into construction of roads, buildings, bridges, canal, bunds, barrage etc. and is based in Madhya Pradesh.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Acuite has taken the standalone view on the business and financial risk profile of Bindal Developers (BD).
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| Key Rating Drivers |
| Strengths |
| Established track record of operations with experienced management
The firm has an established track record of operations for more than a decade in civil construction industry. The firm is engaged in construction of Roads, Buildings & Bridges, Canal, bunds & barrage etc. for government projects such as Rural Road under Pradhan Mantri Gram Sadak Yojana, construction of four lanes CC roads etc. and also as a sub-contractor for main contractors such as L&T infrastructures and Adani Road projects. The proprietor, Mr. Narsingh Bindal, has been associated with this industry for over a decade. Acuite believes that the firm will continue to benefit from its established operations in the construction industry along with reputed clientele over the medium term.
Revenue growth and improvement in the profitability The firm has reported an improvement in revenues which stood at Rs. 209.93 Crore in FY2025 against Rs. 161.01 Crore in FY2024 due to increase in execution of orders. The firm achieved revenues of Rs. 113.22 Crore as of October 2025. The company reported sales of Rs. 81.82 crore in H1FY2026, reflecting a 9% growth over Rs. 68.68 crore in H1FY2025. The firm has an unexecuted order book of ~Rs 191.00 crore as on 31 October 2025, which expected to be completed by November 2026. Additionally, all the projects are from various Government departments, denotes less default risk. The EBITDA margins of the firm stood at 9.50 percent in FY2025 as against to 10.36 percent in FY2024. The PAT margins of the firm stood at 4.20 percent in FY2025 as against to 5.75 percent in FY2024. Going forward, the firm is expected to achieve the revenue of approximately Rs 220.00- 240.00 Cr. by the end of FY2026. Acuité believes that going forward the performance of the company will remain a key monitorable.
Moderate Financial Risk Profile The financial Risk Profile of the firm is moderate marked by net-worth of Rs. 66.02 crore as on 31st March 2025 against Rs. 63.60 Crore as on 31st March 2024 due to accretion of reserves and unsecured loans being treated as quasi equity. Team has considered unsecured loans of Rs. 35.34 Cr. as on March 31, 2025 which earlier was Rs. 40.95 Cr. as on March 31,2024, as quasi equity, as the management has undertaken to maintain the amount in the business over the medium term. Further, the total debt of the firm stood at Rs. 74.83 Crore as on 31st March 2025 against Rs. 71.35 Crore as on 31st March 2024. The proprietor has taken some unsecured loans from the banks & financial institutions to support the business operations and to purchase various land properties and increase in the long-term debt is for the capital expenditure related to addition in plant and machinery. However, the firm is planning to reduce the unsecured loans in future and infuse capital instead. Further, the gearing ratio of the firm stood at 1.13 times in FY2025 against 1.12 times in FY2024. The TOL/TNW ratio stood at 2.17 times in FY2025 against 1.58 times in FY2024. The debt protection metrics stood moderate with interest coverage ratio (ICR) and debt service coverage ratio (DSCR) at 2.32 times and 1.10 times respectively in FY2025 against 2.58 times and 1.08 times respectively in FY2024. Acuite believes that the financial risk profile of the firm may improve in future as the firm is not planning any debt-funded capex in near future.
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| Weaknesses |
| Working capital intensive operations
Bindal Developers (BD) operations remained working capital intensive marked by gross current assets (GCA) which stood at 263 days in FY2025 against 265 days in FY2024. This is largely driven by high inventory days of 58 days in FY2025 as against 53 days in FY2024. The debtor days increased to 103 days in FY2025, against 64 days in FY2024. Further, the creditor days of the firm stood at 233 days in FY2025, against 89 days in FY2024. The consolidated average fund-based bank limit utilization of the firm stood at 89.19 per cent in last 06 months ending October 2025. Acuite expects that the working capital operations of the firm will remain intensive in medium to near term and will remain a key monitorable.
Risk of capital withdrawal Bindal Developers constitution as a proprietary firm is exposed to discrete risks, including the possibility of withdrawal of capital by the proprietor. Moreover, the proprietorship nature partially limits the flexibility to raise the funds vis - à-vis a limited company. Acuite believes that any substantial withdrawal of capital by the proprietor is likely to have an adverse impact on the capital structure and thereby overall financial risk profile of the firm. Tender driven nature of business in highly fragmented & Competitive Industry The civil construction is a fragmented industry with a presence of few large pan India players where subcontracting & project specific partnerships for technical/financial reasons are common. The firm faces stiff competition with its competitors in procuring orders through bidding, immense competition for procuring tenders leads to very competitive pricing which in turn lead to stress on the margins. The firm receives its work orders from government departments through tenders floated by the departments.
Profitability susceptible to volatility in raw material prices
Major raw materials used in construction activities are steel and cement which are usually sourced from large players at proximate distances. The input prices are generally volatile and consequently the profitability of the firm remains susceptible to fluctuation in input prices. However, a presence of escalation clause in most of the contracts provides comfort.
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| Rating Sensitivities |
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Not Applicable
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| Liquidity Position |
| Adequate |
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The liquidity Profile of the firm is adequate with net cash accruals of Rs. 13.48 Crore in FY2025 against the debt repayment obligations of Rs. 11.32 Crore in the same period. Further, the firm is expected to generate net cash accruals of Rs. 14.00-16.00 Crore against debt repayment obligation of Rs. 10.00-11.00 Crore for the same period. The current ratio of the firm stood at 1.33 times in FY2025 against 1.55 times in FY2024. Additionally, as on March 31, 2025, the firm have Rs. 2.07 crore of cash and cash equivalents which provides additional liquidity comfort to the business. The consolidated average fund-based bank limit utilization of the firm stood at 89.19 per cent in last 06 months ending October 2025. Acuite believes that the liquidity of the firm is likely to remain adequate due to steady net cash accruals as against moderate debt repayment obligations.
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| Outlook |
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Not Applicable
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 209.93 | 161.01 |
| PAT | Rs. Cr. | 8.82 | 9.26 |
| PAT Margin | (%) | 4.20 | 5.75 |
| Total Debt/Tangible Net Worth | Times | 1.13 | 1.12 |
| PBDIT/Interest | Times | 2.32 | 2.58 |
| 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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