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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 45.50 | ACUITE BB | Stable | Assigned | - |
| Bank Loan Ratings | 53.00 | ACUITE BB | Stable | Reaffirmed | - |
| Total Outstanding Quantum (Rs. Cr) | 98.50 | - | - |
| Rating Rationale |
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Acuité has reaffirmed 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). Also, assigned its long-term rating of ‘ACUITE BB’ (read as ACUITE double B) on the Rs.45.50 Cr bank facilities of Mylo Healthcare Private Limited. 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 and full fund tieup for the project. However, the above mentioned strengths are partly offset by project risk and nascent stage of operations.
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| 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. The company is currently undertaking a project to run a 300 bed multi speciality hospital in Noida.
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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 and is currently running Felix Hospital under Felix Healthcare Private Limited (FHPL). FHPL has ~20% stake in MHPL and has given corporate guarantee for the debt taken by MHPL. The promotors of the company are supported by qualified panel of doctors in the hospital. 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. Minimum Fund Tie Up Risk The company has tied up entire funds of Rs. 131.34 Cr. for the project of 300 bed multi speciality hospital by way of sanctioned debt of Rs. 98.50 Cr. and rest of the amount will be funded by the promoter's contribution bringing down the funding risk to minimum. |
| Weaknesses |
| Nascent stage of construction posing execution risk
MHPL’s is in the nascent stage of construction as the construction has started in December 2022 the construction will be completed in next 2 years and 8 Months and hence has a risk of implementation of project in a time bound manner as any external factor such as weather, natural calamity or delay in procurement of machinery & equipment or delay in civil construction etc. or any uther unforeseen circumstances can impact the completion timeline. Any delay in completion may result into cost and time overruns and hence remain a key rating sensitivity. Demand Risk As several small and large players are available in the city hence the demand of the hospital remains a key monitorable. However the risk is mitigated by the locational advantage to the project along with the demography of the catchment area. The hospital has catchment area with 1.5 lac residential flats with 5-7 lac high paying capacity population. In addition to the same the vicinity has several corporate offices and businees park. Further, the proposed World-Class Interstate bus terminal will be adjacent to the hospital. The Jewar Airport will be located with travel time of less than 30 minutes from the hospital. It will allow easy access to domestic and international patients to reach the Hospital. Regulatory 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. |
| Rating Sensitivities |
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| Material covenants |
| None |
| Liquidity Position |
| Adequate |
| The liquidity position of the company is adequate as the bank loan for the construction of hospital is already sanctioned and is having the moratorium till March 2027. Further, the liquidity is supported by the promoter’s infusion of funds to the tune of Rs 3.69 Cr. as equity and Rs. 14.09 Cr. as unsecured loan as on 22 May 2023. |
| Outlook: Stable |
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Acuité believes that MHPL will maintain a 'stable' outlook over medium term on account of experienced promoter, minimal funding risk, steady growth in construction and finalization of vendors for construction. The outlook may be revised to ‘Positive’ in case the company achieves higher than expected completion of project resulting into lower project execution risk. Conversely, the outlook may be revised to ‘Negative’ in case of substantial delay in its construction resulting into overrun cost.
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Provisional) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 0.20 | 0.05 |
| PAT | Rs. Cr. | 0.06 | 0.03 |
| PAT Margin | (%) | 29.05 | 69.73 |
| Total Debt/Tangible Net Worth | Times | 0.25 | 1.88 |
| PBDIT/Interest | Times | 13.60 | 61.98 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.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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