|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 112.59 | ACUITE BBB- | Reaffirmed & Withdrawn | - |
| Bank Loan Ratings | 15.00 | Not Applicable | Withdrawn | - |
| Bank Loan Ratings | 6.41 | - | ACUITE A3 | Reaffirmed & Withdrawn |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 134.00 | - | - |
|
Rating Rationale |
|
Acuite has reaffirmed and withdrawn its long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B Minus) on the Rs. 112.59 Cr. and short-term rating of ‘ACUITE A3’ (read as ACUITE A Three) on the Rs.6.41 Cr. bank facilities of Goldfinch Resorts Private Limited (GRPL).
Acuite has also withdrawn its long-term rating on the Rs.15.00 Cr. proposed bank facilities of Goldfinch Resorts Private Limited (GRPL). The same is withdrawn without assigning any rating as it is a proposed facility. The rating withdrawal is in accordance with the Acuite’s policy on withdrawal of rating as applicable to the respective facility / instrument. The rating is being withdrawn on account of request received from the company and NOC(No Objection Certificate) received from the lender. Rationale for reaffirmation: The rating reaffirmation takes into account the improvement in the scale of operations and profitability in FY2024. Further, it considers extensive experience of the promoters of more than three decades in the hospitality and land aggregation business. Growth in revenue is primarily contributed by healthy bookings throughout the year and revenue from the Joint development agreement with Prestige Estates Projects Limited. Further, the rating also factors in the strong support of MRG Group to GRPL by way of unsecured loans and corporate guarantee. The rating is, however, constrained by below average financial risk profile. |
| About the Company |
|
Incorporated in 2011, Goldfinch Resorts Private Limited (GRPL) is engaged in hospitality business and owns a hotel in Goa managed by ‘Hilton Worldwide’. GRPL is a part of MRG Group and Trishul Buildtech and Infrastructure Private Limited (TBIPL) is the flagship company of the group. GRPL is a step-down subsidiary of TBIPL. GRPL has recently entered in to real estate business to acquire and monetize land parcels as well as develop residential/commercial property.
|
| About the Group |
|
MRG group is promoted by Mr. K. Prakash Shetty along with his family members and is in the business for almost three decades. TBIPL is a flagship company of the MRG Group. The group has the following two verticals Hospitality Business- Running hotel at Bangalore under brand Marriott. The group also operates hotels under three brands- Goldfinch, Marriott and Hilton through its subsidiaries. Acquiring and monetizing land parcels through various avenues like Revenue Sharing and Joint Development Agreement (JDA) among others.
|
| Unsupported Rating |
| Acuite BB-/Stable |
| Analytical Approach |
|
Acuité has considered the standalone business and financial risk profile of GRPL and has also factored in the support from MRG Group by way of unsecured loans, corporate guarantee amongst others. The unsecured loans have been treated as debt as the same are interest bearing, not subordinated to bank debt and are repayable in nature.
|
| Key Rating Drivers |
| Strengths |
MRG Group, founded by Mr. K. Prakash Shetty, is a well-established group having an operational track record of more than three decades in the hospitality and land aggregation business. Thepromoters of the group have an experience of almost three decades in the aforementioned line of business. Mr. Gaurav Shetty is the Managing Director of TBIPL. The long track record of operations and experience of the management have helped the group to develop healthy relationships with large developers such as Prestige Group. GRPL’s liquidity has been continuously been supported by financial support from its parent company – TBIPL. TBIPL has been infusing unsecured loans in GRPL which has been utilized towards repayment obligations.
The company witnessed a significant improvement in its operating revenue marked by y-o-y growth of 68.87 percent in FY 2024, which stood at Rs.110.98 Cr. in FY2024 as against Rs.65.77 Cr. in FY2023. Revenue consist of income from hotels, foods & beverages, casinos and revenue share from joint development. This growth in revenue is primarily contributed by healthy booking throughout the year and JDA with Prestige Estates Projects Limited (Real estate revenue). During FY2024, revenue from hotels, food and beverages stood at Rs.63.67 Cr. against the revenue of Rs.57.72 Cr of the previous year, revenue from JDA stood at Rs. 36.00 Cr. The average occupancy during 12 months’ period of FY24 improved to ~83 percent. Further, the operating profit margin improved to ~67.88 percent in FY2024 from 31.42 percent in FY2023.
|
| Weaknesses |
The company’s financial risk profile is below average, marked by negative net worth, high gearing and moderate debt protection metrics. The net worth of the company stood negative at Rs.0.48 Cr and Rs.30.95Cr as on March 31, 2024, and 2023, respectively on account of historical losses. However, there is improvement in net worth is due to the profits in FY2024. Gearing of the company stood negative at 534.35 times on March 31, 2024, against negative at 8.72 times as on March 31, 2023. Debt protection metrics—interest coverage ratio and debt service coverage ratio—stood at 3.53 times and 1.55 times as on March 31, 2024, respectively, as against 1.35 times and 1.07 times as on March 31, 2023, respectively. TOL/TNW (Total outside liabilities/Total net worth) stood negative at 729.92 times and 8.89 times as on March 31, 2024, and 2023, respectively. The debt to EBITDA of the company stood at 3.31 times as on March 31, 2024, as against 12.31 times as on March 31, 2023. The improvement is on account of improved EBTIDA in FY2024.
|
| Rating Sensitivities |
| Not Applicable |
| Liquidity Position: Adequate |
|
GRPL's liquidity is adequate, marked by adequate net cash accruals as against maturing debt obligations. The company generated cash accruals of Rs.43.88 Cr in FY2024, while its maturing debt obligations were Rs. 20.68 Cr during the same period.
|
| Outlook: Not applicable |
| |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 110.98 | 65.77 |
| PAT | Rs. Cr. | 30.58 | (6.18) |
| PAT Margin | (%) | 27.56 | (9.39) |
| Total Debt/Tangible Net Worth | Times | (534.35) | (8.72) |
| PBDIT/Interest | Times | 3.53 | 1.35 |
| 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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm |
| Note on complexity levels of the rated instrument |
|
| |
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
|
||||||||
|
Contacts |
About Acuité Ratings & Research |
