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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 47.00 | ACUITE C | Downgraded | - |
| Total Outstanding | 47.00 | - | - |
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Rating Rationale |
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Acuite has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from 'ACUITE B+' (read as ACUITE B plus) on the Rs. 47.00 Crore bank facilities of Mehrab Logistics and Aviation Limited (MLAL) .
Rationale for rating downgrade The rating downgarde takes cognizance of delays in servicing debt obligations as understood from credit bureau information report of the company. |
| About the Company |
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Incorporated in 1997, and is based in Lucknow, (U.P), Mehrab Logistics and Aviation Limited (MLAL) is promoted and managed by Mr. Abdul Hai Khan. The company is engaged in transportation of tractors, jeeps, cars etc., having a fleet of ~450 trailers.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profiles of the MLAL to arrive at this rating. |
| Key Rating Drivers |
| Strengths |
| Established operational track record and long association with renowned customers Mr. A.H Khan, promoter of MLAL have an extensive experience of over two decades in the logistic industry which had enabled MLAL to establish relationships with reputed customers. The company has a reputed clientele and enjoys a long term relationship of more than a decade with some of the clients like Mahindra Logistics Limited, Maruti Suzuki India Ltd., Tata Motors Ltd., etc. to name a few. It provides services across India, primarily North India. |
| Weaknesses |
| Instance of delay and irregularities account conduct As per the delays reflected in Credit Bureau Information Report of the company. |
| Rating Sensitivities |
| Timely servicing of debt repayment obligations |
| Liquidity Position: Poor |
| Liquidity position of the company is poor as there are delays in servicing of debt obligations. |
| Outlook: |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Provisional) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 128.46 | 129.03 |
| PAT | Rs. Cr. | 2.21 | (2.34) |
| PAT Margin | (%) | 1.72 | (1.81) |
| Total Debt/Tangible Net Worth | Times | 9.27 | 20.45 |
| PBDIT/Interest | Times | 2.78 | 1.30 |
| 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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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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