Press Release

December 23, 2024

BST INFRATECH LIMITED
Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	175.21	ACUITE C \| Downgraded	-
Bank Loan Ratings	12.79	ACUITE D \| Downgraded	-
Bank Loan Ratings	80.00	-	ACUITE A4 \| Downgraded
Bank Loan Ratings	20.00	-	ACUITE D \| Downgraded
Total Outstanding	288.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has downgraded the long term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE BBB+' (read as ACUITE Triple B plus) on the Rs. 12.79 Cr. and short term rating to 'ACUITE D' (read as ACUITE D) from 'ACUITE A2' (read as ACUITE A two) on the Rs. 20.00 Cr. bank facilities of BST Infratech Limited (BSTIL).

Further Acuité has downgraded its long term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE BBB+ '(read as ACUITE Triple B plus) on Rs. 175.21 Cr. and short term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A2' (read as ACUITE A two) on Rs. 80.00 Cr. bank facilities of BST Infratech Limited (BSTIL).

Rationale for Rating Downgrade

The rating downgrade is on account of a delays in repayment of debt obligations as reflected in the Credit bureau Information report.

About the Company

Incorporated in 2007, BST Infratech Limited (BSTIL) is engaged in the manufacturing of mild steel (MS) strips, MS Bars & wire rods, MS/GI Wires, MS & Galvanized Iron (GI) pipes, tubular poles and transmission towers. BSTIL is promoted by Mr. Gopal Kumar Agarwal and Mr. Pradip Kumar Agarwal. The manufacturing unit is located in Asansol (West Bengal) with an installed capacity of 60,000 MTPA for MS strips, 96,000 MTPA for MS/GI pipes, 60,000 MTPA for MS Bars & wire rods, 12,000 MTPA for MS/GI wires, 10,000 MTPA tubular poles and 24,000 MTPA transmission towers.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken the standalone view of the business and financial risk profile of BSTIL

Key Rating Drivers

Strengths

Long track record of operations and segmental diversification

BST Infratech Limited (BSTIL) has established a long standing presence of around two decades in the manufacturing industry of iron & steel products. BSTIL is supported by the extensive experience of Mr. Gopal Kumar Agarwal and Mr Pradip Kumar Agarwal. The company has achieved segmental divergence and executes EPC contracts relating to installation and supply of power transmission towers along with the manufacturing business.
Acuité believes that the experienced management and the established presence of the BSTIL will continue to benefit the company going forward.

Weaknesses

Cyclical nature of the industry

The company’s performance remains vulnerable to cyclicality in the steel sector as demand for steel depends on the performance of the end user segments such as construction and real estate. Indian steel sector is highly competitive due to the presence of a large number of players. The operating margin of the company is exposed to fluctuations in the prices of intermediate goods as well as realization from finished goods.

Rating Sensitivities

Timely repayments of loan obligations

Liquidity Position

Stretched

Liquidity position of the company is poor as there have been delays observed in the debt servicing.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 24 (Provisional)	FY 23 (Actual)
Operating Income	Rs. Cr.	1220.28	1127.38
PAT	Rs. Cr.	7.62	6.28
PAT Margin	(%)	0.62	0.56
Total Debt/Tangible Net Worth	Times	2.02	1.80
PBDIT/Interest	Times	1.60	1.73

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

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
31 May 2024	Bank Guarantee (BLR)	Short Term	20.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	30.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	40.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A2 (Reaffirmed)
	Term Loan	Long Term	3.42	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	3.67	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	15.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	4.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	6.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	36.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	6.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Working Capital Term Loan	Long Term	1.30	ACUITE BBB+ \| Stable (Assigned)
	Working Capital Term Loan	Long Term	2.12	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	2.79	ACUITE BBB+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	6.80	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	24.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	70.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	4.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	1.77	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	1.13	ACUITE BBB+ \| Stable (Assigned)
03 Mar 2023	Bank Guarantee (BLR)	Short Term	20.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	21.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	9.00	ACUITE A2 (Assigned)
	Bank Guarantee/Letter of Guarantee	Short Term	14.50	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	25.50	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A2 (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	23.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	1.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	37.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	33.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	4.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	6.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	36.00	ACUITE BBB+ \| Stable (Assigned)
23 Dec 2021	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	14.50	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	21.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	20.00	ACUITE A2 (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB+ \| Negative (Reaffirmed)
	Cash Credit	Long Term	37.00	ACUITE BBB+ \| Negative (Reaffirmed)
	Cash Credit	Long Term	23.00	ACUITE BBB+ \| Negative (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB+ \| Negative (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE D \| Downgraded ( from ACUITE A2 )
Bandhan Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A4 \| Downgraded ( from ACUITE A2 )
UCO Bank	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE A4 \| Downgraded ( from ACUITE A2 )
Indian Bank	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE A4 \| Downgraded ( from ACUITE A2 )
Indian Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	24.00	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
UCO Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	70.00	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Bandhan Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE D \| Downgraded ( from ACUITE BBB+ )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.80	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
UCO Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	28 Feb 2026	3.67	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
UCO Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 May 2028	3.42	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Punjab National Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Nov 2027	2.79	Simple	ACUITE D \| Downgraded ( from ACUITE BBB+ )
Bandhan Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	10 Dec 2027	1.77	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Bandhan Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	05 Sep 2028	1.13	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Union Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	18 May 2028	15.00	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Bandhan Bank	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.00	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Indian Bank	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	36.00	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Punjab National Bank	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.00	Simple	ACUITE D \| Downgraded ( from ACUITE BBB+ )
Indian Bank	Not avl. / Not appl.	Working Capital Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2025	1.30	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )
Indian Bank	Not avl. / Not appl.	Working Capital Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Dec 2027	2.12	Simple	ACUITE C \| Downgraded ( from ACUITE BBB+ )

Contacts

Mohit Jain
Senior Vice President - Rating Operations

Anuja Bele
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.