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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 53.00 | ACUITE BB | Stable | Assigned | - |
| Total Outstanding Quantum (Rs. Cr) | 53.00 | - | - |
| Rating Rationale |
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Acuité has assigned its long-term rating of ‘ACUITE BB’ (read as ACUITE double B) on the Rs.53.00 Cr bank facilities of Mylo Healthcare Private Limited (MHPL). The outlook is ‘Stable’.
Rationale for Rating The rating assigned reflects the extensive experience of management along with established track record of operations for nearly more than five years. Further, the rating takes into consideration the corporate guarantee given by the group company (FELIX HEALTHCARE PRIVATE LIMITED) to execute the project. However, the above mentioned strengths are partly offset by competition risk and nascent stage of operations. |
| About the Company |
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Mylo Healthcare Private Limited Incorporated in 2020. Company is Promoted by Mr. Dharmendra Kumar Gupta and Mrs. Rashmi Gupta. Mylo Healthcare Private Limited registered office Address is in Noida. Company was registered as a Private Limited company by the Registrar of Companies, Delhi under the companies Act, 2013
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| Analytical Approach |
| Acuité has considered the standalone business and financial risk profiles of MHPL to arrive at this rating. |
Key Rating Drivers
| Strengths |
| Experienced Management and Reputed Customers
MHPL is promoted by Dr. D.K. Gupta and Dr. Rashmi Gupta and Dr. Shilpi Gupta who have an experience of more than a decade each in the healthcare industry. All of the directors of the company are practicing doctors. The promotors of the company are backed by qualified doctors. FHPL has tie ups with most Third Party Administrators (TPAs) in the industry and also caters to corporate clients. Corporate clientele of FHPL includes Bharat Heavy Electricals Limited (B.H.E.L), National Thermal Power Corporation Limited (NTPC), Northern railways etc. Acuité believes that the Company will continue to derive benefit from its experienced management and corporate guarantee from FHPL over the medium term. |
| Weaknesses |
| Nascent stage of operations
MHPL’s is on the nascent stage of construction and will face competition from many established hospitals in the same vicinity. The total cost of the hospital construction is Rs 70.68 crore of which Rs 53 Crore funded through bank finance and remaining through infusion by the promoter. The bank loan is already sanctioned and the promoters has already infused the funds to the tune of Rs 7 Cr till date. However, the construction has started in December 2022 only and date of commercial operation is April 2025. However, scale may improve but may remain modest over the medium term and revenue visibility is yet to be seen. Completion of the hospital on time without any cost and time overruns is a key rating sensitivity. Regulatory and Competition Risk The healthcare sector functions under multiples layers of regulations of government and professional bodies. In view of the Covid-19 pandemic, regulatory restrictions and state intervention in the normal operations of hospitals has increased. Additionally, the hospital faces intense competition from several players in the city from small players as well as large players. |
| Rating Sensitivities |
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| Material covenants |
| None. |
| Liquidity Position |
| Adequate |
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The liquidity position of the company is adequate as the bank loan for the construction of hospital is already disbursed and is having the moratorium till March 2025. Further, the liquidity is supported by the promoter’s infusion of funds to the tune of Rs 7 Cr till date.
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| Outlook: Stable |
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Acuité believes that MHPL will maintain a 'stable' outlook over medium term on account of experienced management, reputed clientele, steady revenue growth and moderate financial risk profile. The outlook may be revised to ‘Positive’ in case the company achieves higher than expected improvement in its operating income and profitability while maintaining its capital structure. Conversely, the outlook may be revised to ‘Negative’ in case of substantial reduction in its operating income, sharp decline in its operating margins and further stretch in its working capital cycle
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 0.05 | 0.00 |
| PAT | Rs. Cr. | 0.03 | 0.00 |
| PAT Margin | (%) | 69.73 | 0.00 |
| Total Debt/Tangible Net Worth | Times | 1.88 | 0.00 |
| PBDIT/Interest | Times | 61.98 | (63.90) |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| 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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| Rating History : |
| Not Applicable |
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