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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 40.00 | ACUITE D | Downgraded | - |
| Total Outstanding | 40.00 | - | - |
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Rating Rationale |
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Acuite has downgraded its long-term rating to Acuite D (read as ACUITE D) from ACUITE BB- (read as ACUITE double B minus) on Rs.40 Cr bank facilities of Harshitha Hospitals Private Limited (HHPL). The downgrade in rating is on account of a delay in servicing debt obligations of HHPL as confirmed by its banker. |
| About the Company |
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Harshitha Hospitals Private Limited(HHPL) is based out of Madurai, Tamil Nadu. Established in the year 2009 and commenced operations in 2011, HHPL offers clinical excellence through experienced doctors, high-end infrastructure and transparent patient care. Hospital’s facility is a NABH-accredited advanced tertiary care facility with 100-beds and state-of-the-art infrastructure. The hospital is owned by the Harshitha Hospitals Private Limited which worked both as a COVID Centre and Hospital.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
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Acuite has considered standalone business and financial risk profile of Harshitha Hospital Private Limited(HHPL).
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| Key Rating Drivers |
| Strengths |
| Established regional player aided by strong pedigree in Madurai region
Started by Dr. C.N Ilanakumar in 2009, Harshitha Hospital Private Limited(HHPL) is well known hospital chain in Madurai city. Initially HHPL started its operations at East marret street in Madurai city, later in 2017 HHPL shifted its premises to Avaniyapuram which is at close proximity to Madurai airport. Currently HHPL operates 100 beds hospitals at Avaniyapuram. It offers a comprehensive range of healthcare services in various fields s cardiology, Neurology, Orthopaedic, nephrology, gastroenterology, Gynaecology & Obstetrics, Paediatric, and others. It offers a comprehensive range of healthcare services across 10+ specialties and super specialties. |
| Weaknesses |
| Instance of delay in servicing of debt obligation
HHPL has delayed in servicing of debt obligation since 23rd, October 2023 as per the feedback recevied from its banker. |
| Rating Sensitivities |
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TImely servicing of debt-repayment obligations.
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| All Covenants |
| Not Applicable |
| Liquidity Position |
| Poor |
| Liquidity is marked poor as there has been a delay in servicing the debt repayment obligation by the company. |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| Not Applicable |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 35.79 | 28.40 |
| PAT | Rs. Cr. | 1.92 | 1.14 |
| PAT Margin | (%) | 5.37 | 4.02 |
| Total Debt/Tangible Net Worth | Times | 9.18 | 15.45 |
| PBDIT/Interest | Times | 2.45 | 2.15 |
| 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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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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