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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 467.00 | ACUITE D | Reaffirmed | - |
| Total Outstanding | 467.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed its long-term rating of 'ACUITE D' (read as ACUITE D) to the Rs.467.00 Cr. bank facilities of Deeta Constructions Private Limited(DCPL).
Rationale for the reaffirmation The rating reaffirmation is on account of delays in servicing of term loan and irregular account conduct as per the banker's feedback. Consequently, the account is currently marked as SMA-2 by the lender. |
| About the Company |
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Deeta Constructions Private Limited (DCPL) is a Karnataka-based company incorporated in 2006. The company is engaged in activities relating to real estate. The company is managed by Mr. Thippareddygari Harikrishna and Mr. Gopinath Raj Kumar. DCPL is a subsidiary of Mantri Developers Private Ltd. and is part of Mantri Group. DCPL operates a commercial complex named Mantri Commercio, located in Marathahalli, Bangalore. The total area of the building is 4.69 lakh sq. ft.
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| Unsupported Rating |
| Not applicable |
| Analytical Approach |
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Acuite has considered standalone business and financial risk profile of Deeta Constructions Private Limited(DCPL) to arrive at the rating.
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| Key Rating Drivers |
| Strengths |
Deeta Constructions Private Limited (DCPL) is managed by Mr. Thippareddygari Harikrishna and Mr. Gopinath Raj Kumar. DCPL is a subsidiary of Mantri Developers Private Ltd. and part of the Mantri Group, which has more than two decades of experience in the real estate and construction business. Mantri Group has a long track record of executing residential and commercial projects in cities like Bengaluru, Hyderabad, Chennai, Pune, and Delhi.
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| Weaknesses |
There have been continues instances of delays in the servicing of term loan obligations by DCPL as confirmed by the banker and as reflected in company's account statements. As per the banker's feedback, DCPL’s account is currently marked SMA-2.
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| Rating Sensitivities |
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| Liquidity Position: Poor |
| The liquidity position of the company is marked poor on account of continued instances of delays in servicing of debt obligations. |
| Outlook: Not applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 37.76 | 37.33 |
| PAT | Rs. Cr. | (4.59) | (5.60) |
| PAT Margin | (%) | (12.15) | (15.01) |
| Total Debt/Tangible Net Worth | Times | (4.05) | (4.12) |
| PBDIT/Interest | Times | 1.04 | 1.03 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.htm |
| Note on complexity levels of the rated instrument |
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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.
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