Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 357.63 ACUITE BB+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 29.87 - ACUITE A4+ | Downgraded | Issuer not co-operating*
Total Outstanding 387.50 - -
 
Rating Rationale

­Acuite has downgraded its long-term rating to 'ACUITE BB+' (read as ACUITE double B plus) from 'ACUITE BBB+' (read as ACUITE triple B plus) and short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) from 'ACUITE A2' (read as ACUITE A two) on Rs.387.50 Cr. bank facilities of Lee Pharma Limited (LPL). 

The rating is downgraded and flagged as issuer non cooperative on account of information risk and is based on the best available information.


About the Company

­Incorporated in 1997 by Mr. A Venkata Reddy and his family members, Lee Pharma Limited (LPL) is engaged in manufacturing of active pharmaceuticals ingredients (APIs), bulk drugs intermediate chemicals and formulations. Based in Hyderabad (Telangana), LPL operates through 4 units, 2 in Telangana (Hyderabad & Medak) and 2 in Vizag (Andhra Pradesh). It also has a research facility, Lee Advanced Research Centre, in Medak (Telangana). The company is based out of Hyderabad (Telangana). LPL’s manufacturing facilities are approved by several international regulatory bodies such as USFDA, EUGMP, and WHO GMP etc.

 
Unsupported Rating
­Not applicable
 
Non-cooperation by the issuer/borrower

­­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

 
Limitation regarding information availability

­The rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower). Acuité endeavored to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

 
Rating Sensitivities

­"No information provided by the issuer / available for Acuite to comment upon."

 
Liquidity Position

­"No information provided by the issuer / available for Acuite to comment upon."

 
Outlook: Not applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 820.18 645.28
PAT Rs. Cr. 34.88 35.42
PAT Margin (%) 4.25 5.49
Total Debt/Tangible Net Worth Times 1.67 1.40
PBDIT/Interest Times 3.40 4.30
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.htm

Note on Complexity Levels of the Rated Instrument

­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

 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
03 Mar 2023 Bank Guarantee (BLR) Short Term 1.50 ACUITE A2 (Downgraded from ACUITE A2+)
Cash Credit Long Term 23.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Cash Credit Long Term 12.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Cash Credit Long Term 20.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Cash Credit Long Term 31.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Cash Credit Long Term 14.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Cash Credit Long Term 20.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Cash Credit Long Term 31.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Derivative Exposure Short Term 1.62 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 5.00 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 15.00 ACUITE A2 (Downgraded from ACUITE A2+)
PC/PCFC Long Term 1.00 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Proposed Letter of Credit Short Term 6.75 ACUITE A2 (Assigned)
Proposed Term Loan Long Term 52.20 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 19.86 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 17.14 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 11.75 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 1.50 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Term Loan Long Term 28.11 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 42.81 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Term Loan Long Term 14.19 ACUITE BBB+ | Stable (Assigned)
Working Capital Demand Loan (WCDL) Long Term 9.17 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
Working Capital Term Loan Long Term 8.90 ACUITE BBB+ | Stable (Downgraded from ACUITE A- | Stable)
12 Apr 2022 Bank Guarantee (BLR) Short Term 1.50 ACUITE A2+ (Assigned)
Cash Credit Long Term 7.50 ACUITE A- | Stable (Assigned)
Cash Credit Long Term 23.50 ACUITE A- | Stable (Assigned)
Cash Credit Long Term 20.00 ACUITE A- | Stable (Assigned)
Cash Credit Long Term 20.00 ACUITE A- | Stable (Assigned)
Cash Credit Long Term 23.00 ACUITE A- | Stable (Assigned)
Letter of Credit Short Term 5.00 ACUITE A2+ (Assigned)
Letter of Credit Short Term 10.00 ACUITE A2+ (Assigned)
Letter of Credit Short Term 5.00 ACUITE A2+ (Assigned)
PC/PCFC Long Term 1.00 ACUITE A- | Stable (Assigned)
Proposed Long Term Bank Facility Long Term 25.81 ACUITE A- | Stable (Assigned)
Term Loan Long Term 25.00 ACUITE A- | Stable (Assigned)
Term Loan Long Term 1.50 ACUITE A- | Stable (Assigned)
Term Loan Long Term 8.87 ACUITE A- | Stable (Assigned)
Term Loan Long Term 15.09 ACUITE A- | Stable (Assigned)
Term Loan Long Term 14.66 ACUITE A- | Stable (Assigned)
Term Loan Long Term 4.00 ACUITE A- | Stable (Assigned)
Term Loan Long Term 8.00 ACUITE A- | Stable (Assigned)
Working Capital Term Loan Long Term 9.17 ACUITE A- | Stable (Assigned)
Working Capital Term Loan Long Term 8.90 ACUITE A- | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
Axis Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.50 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 )
Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 31.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
SVC Co-Op Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Axis Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 )
HDFC Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 )
HDFC Bank Ltd Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Not Applicable Not avl. / Not appl. Proposed Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.75 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 )
Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.62 Simple ACUITE A4+ | Downgraded | Issuer not co-operating* ( from ACUITE A2 )
Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 52.20 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
SVC Co-Op Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.19 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.50 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 19.86 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.14 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.75 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 28.11 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
SVC Co-Op Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 42.81 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
SVC Co-Op Bank Limited Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.17 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )
Canara Bank Not avl. / Not appl. Working Capital Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.90 Simple ACUITE BB+ | Downgraded | Issuer not co-operating* ( from ACUITE BBB+ )

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