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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 20.00 | ACUITE A- | Stable | Assigned | - |
| Bank Loan Ratings | 45.00 | ACUITE A- | Stable | Reaffirmed | Negative to Stable | - |
| Bank Loan Ratings | 25.00 | - | ACUITE A2+ | Assigned |
| Bank Loan Ratings | 180.00 | - | ACUITE A2+ | Reaffirmed |
| Total Outstanding | 270.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has reaffirmed its long-term rating of ‘ACUITE A-' (read as ACUITE A minus) and short-term rating at ‘ACUITE A2+’ (read as ACUITE A two plus) on Rs.225.00 crore bank facilities of Bygging India Limited (BIL). The outlook is revised to 'Stable' from 'Negative'.
Acuite has assigned its long-term rating of ‘ACUITE A-' (read as ACUITE A minus) and short-term rating at ‘ACUITE A2+’ (read as ACUITE A two plus) on Rs.45.00 crore bank facilities of Bygging India Limited (BIL). The outlook is 'Stable'. Rationale for reaffirmation and revision in outlook The reaffirmation and revision in outlook factors in the improvement in the overall operating performance of the company marked by improvement in profitability margins along with a healthy order book position. Further, the rating also continues to factor in experienced management with established track record of operations, moderate financial risk profile and adequate liquidity. The rating also draws support from the low cost financial and technical assistance company received being a wholly owned subsidiary of Global Dominian Access Socieded Anomina. However, the rating is constrained by working capital intensive nature of operations and geographical concentration and execution risk. |
| About the Company |
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Bygging India Limited (BIL) was incorporated in 1983 and has its headquarter in Delhi. BIL is a wholly owned subsidiary of Global Dominian Access Socieded Anomina, holding 88.41 per stake as on 31st March 2024. BIL is engaged in construction of RCC chimneys for power generation entities and is also involved in engineering and construction of other tall structures such as Prilling towers, silos, cooling towers and window towers. The company caters to industries such as oil & Gas, Power Generation, Petrochemicals, Cement, Steel, Refineries and Metal manufacturing industries. The directors of the company are Mr. Roberto Tobillas Angulo, Mr. Gopal Ravishankar Modi, Mr. German Pradera Lanza, Mr. Ram Babu Jhalani, Ms. Jyoti, and Ms. Jyoti Bansal.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Acuité has considered the standalone business and financial risk profile of BIL to arrive at the rating
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| Key Rating Drivers |
| Strengths |
| Experienced management and established track record of operations
The company has a long operational track record for over three decades and is led by Mr. R.B.Jhalani (CEO and Whole-time director). The management of the company has an extensive experience of more than three decades in the construction industry. Hence, the long track record of operations has enabled company to build strong relationship with customer and supplier. The company is further supported by qualified professionals across the hierarchy to support the day-to-day operations of the company. Acuite believes that the company is expected to benefit from the experienced management team. Steady operating performance and comfortable order book position The company has recorded an operating income of Rs.212.83 crore in FY2024 as against Rs.207.18 crore in FY2023 due to healthy execution of orders. Further, the company has recorded revenue of Rs. 167.70 Cr. as on 9MFY25 and expected close the year at Rs. 220.00 Cr. Operating margin improved and stood at 10.58 percent in FY2024 as against 6.22 percent in FY2023 as the margins of the company varies with the different project execution, going forward, the company is expected to report EBITDA margins in the range of 12-14 percent. The PAT margins also improved significantly and stood at 5.90 percent in FY2024 as against 0.32 percent in FY2023. Financial and technical assistance provided by Global Dominian Access Socieded Anomina
Moderate Financial Risk ProfileBIL is a wholly owned subsidiary of Global Dominian Access Socieded Anomina, a Spanish company having established track record of two decades. The company is predominantly engaged in the construction and engineering segment. It has a worldwide presence through its subsidiaries in Europe, USA, Asia and Africa. The company has 88.41 per cent of stake in BIL, which has benefitted company by gaining access to low cost technical and financial assistance. Moving ahead, the Spanish parent is expected to acquire 100 per cent stake in BIL post March 2028. The association with the company has also enabled them to avail borrowings at lower interest cost. The company has started to execute work order w.r.t construction of Natural Draft Cooling Towers, IFFCO for dome silo's and among others for which the company would be receiving technical assistance from the parent company. Acuite believes that the parent would continue to support the BIL in medium to long term due to strategic presence and its market standing. The financial risk profile of the company stood moderate marked by healthy net worth, low gearing, and moderate debt protection metrics. The tangible net worth stood at Rs.122.07 crore as on 31 March 2024 as against Rs.109.52 crore as on 31 March 2023 due to accretion of profits to reserves. The total debt of the company stood at Rs. 53.69 crore includes Rs. 0.49 crore of long-term debt, Rs. 0.65 crore of CPLTD, Rs.26.99 crore of Unsecured loans and Rs. 25.56 crore of short-term debt as on 31 March 2024. The gearing (debt-equity) improved and stood at 0.44 times as on 31 March 2024 as compared to 0.81 times as on 31 March 2023. Interest Coverage Ratio improved and stood at 4.25 times for FY2024 as against 1.61 times for FY2023. Debt Service Coverage Ratio (DSCR) stood at 2.92 times in FY2024 as against 1.23 times in FY2023. Total outside Liabilities/Total Net Worth (TOL/TNW) stood at 0.96 times as on 31 March 2024 as against 1.45 times as on 31 March 2023. Acuité believes that the financial risk profile of BIL is likely to remain moderate on account of stable margins and conservative financial policy. |
| Weaknesses |
| Working Capital Intensive Operations
The operations of the company remained working capital intensive marked by GCA days of 292 days in FY2024 as against 294 days in FY2023. The GCA days are driven by high debtor days and other current assets. The inventory days stood at 32 days in FY2024 as against 25 days in FY2023. The debtor days stood at 113 days in FY2024 as against 133 days in FY2023. BIL generally gives a credit period of 30-45 days to its customers, sometimes 90 days. Majority of the orders which BIL caters to are tender-based contracts of public sector units and private players. Also, the company is in use of discounting bills method from RXIL (Receivables Exchange of India limited) particularly for government companies through which the payment gets recovered faster. The Creditor days stood at 98 days in FY2024 as against 94 days in FY2023. However, BIL generally allows a credit period of 90 days to its suppliers. The average consolidated utilization of fund-based limits is ~20.83 per cent and of non-fund-based is around ~55 per cent for the past 06 months ended February 2025. Geographical concentration and execution risk The company is executing work orders across 12 states, out of which most of the work order is being executed in the state of Bihar. On the equipment front, the company has well developed asset base for execution. However, the company also hires heavy machinery such as cranes and transit equipment on lease. However with the long-standing relationship with BHEL and Adani Power, the risk of work execution is expected to remain minimal. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The company’s liquidity position is adequate, marked by adequate net cash accruals against its maturity debt obligations. The company generated net cash accruals of Rs. 16.41Crore in FY2024 against its maturity repayment obligations of Rs. 1.47 crore in the same tenure. The average consolidated utilization of fund-based limits is ~20.83 per cent and of non-fund-based is around ~55 per cent for the past 06 months ended February 2025. The company maintains unencumbered cash and bank balances of Rs. 3.65 crore as on March 31, 2024. The current ratio of the company stands at 2.16 times as on March 31, 2024, as against 1.36 times as on 31 March 2023. Acuite believes that liquidity profile of the company is expected to remain adequate in the near to medium term.
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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 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 212.83 | 207.18 |
| PAT | Rs. Cr. | 12.55 | 0.67 |
| PAT Margin | (%) | 5.90 | 0.32 |
| Total Debt/Tangible Net Worth | Times | 0.44 | 0.81 |
| PBDIT/Interest | Times | 4.25 | 1.61 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| 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 |
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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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