| Experienced management coupled with long track of operations
KDBIL, a special-class civil contractor, has been into existence for more than three decades in construction of high-quality EHV transmission lines and substations. Mr. K. K. Shukla, the promoter of KDBIL, is having more than three decades of experience in the civil construction industry. Currently, the business operations are handled and managed by Mr. Bhanu Shukla, who brings an experience of around a decade. KDBIL has executed multiple orders which included construction work of line bays along with installation of line reactors, turnkey construction of pooling substations and others. With promoter's extensive industry experience and timely execution of past projects, KDBIL has been able to establish a long-standing relationship with its suppliers and various government bodies. Further, the revenue of the company grew by ~53.37% to Rs.93.50 Cr. in FY2024 against Rs.60.97 Cr. in FY2023. The improvement in the revenue is primarily on account of timely execution and billing of projects. The operating profit margin improved to 6.24 per cent in FY2024 compared against 5.48 per cent in FY2023. The PAT margin of the company stood at 0.62 percent in FY2024 compared to 0.38 percent in FY2023.
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| Intensive Nature of Working Capital Operations
The company has an intensive nature of working capital operations marked by Gross Current Asset (GCA) days of 219 days in FY2024, as against 391 days in FY2023. The inventory levels stood at 104 days in FY2024 when compared against 237 days in FY2023. The debtor days stood at 21 days in FY2024 as compared against 91 days in FY2023.
Average Financial Risk Profile
The financial risk profile of the company is average marked by moderate net worth, gearing, and debt protection metrics. The tangible net worth of the company stood at Rs.27.87 Cr. as on 31 March 2024 as against Rs.28.71 Cr. as on 31 March 2023. The gearing level of the company is below unity at 0.75 times as on 31 March 2024 as against 0.71 times as on 31 March 2023. The total debt of the company stood at Rs.20.95 Cr. as on March 31, 2024. Interest Coverage Ratio (ICR) stood at 1.30 times for FY2024 against 1.31 times for FY2023. However, Debt Service Coverage Ratio (DSCR) stood below unity at 0.96 times for FY2024 against 0.55 times in FY2023.The total outside liabilities to tangible net worth (TOL/TNW) of the company stood at 1.59 times as of March 31, 2024, as against 1.84 times as of March 31,2023. The Debt/EBITDA levels stood at 3.25 times as of March 31, 2024, as against 4.51 times as of March 31,2023.
Instances of delays in debt servicing
Instances of delays in debt-servicing have been reported in recent months in the Credit Bureau Information report of the company.
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