Press Release March 31, 2025 NANDA INFRA CONSTRUCTION PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	1.00	ACUITE BBB | Stable | Assigned	-
Bank Loan Ratings	18.76	ACUITE BBB | Stable | Reaffirmed	-
Bank Loan Ratings	14.00	-	ACUITE A3+ | Assigned
Bank Loan Ratings	78.50	-	ACUITE A3+ | Reaffirmed
Total Outstanding	112.26	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and the short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.97.26 Cr. bank facilities of Nanda Infra Construction Private Limited (NICPL). The outlook is ‘Stable’. Acuité has assigned the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and the short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.15.00 Cr. bank facilities of Nanda Infra Construction Private Limited (NICPL). The outlook is ‘Stable’. Rationale for rating reaffirmation The rating reaffirmation is on account of improvement in scale of operations backed by comfortable order book position and stable profitability margins. The rating factors in experienced management and long operational track record. The rating also draws comfort from healthy financial risk profile and adequate liquidity position. The rating is however constrained by working capital intensive nature of operations, high geographical concentration in order book and inherent risks in tender based nature of business in an intensely competitive construction industry.

About the Company

I­ncorporated in 2011, Nanda Infra Construction Private Limited (NICPL) is based in Talcher, Odisha and is promoted by Mr. Dilip Kumar Nanda and Mr. Rajendra Kumar Nanda. The company is engaged in civil construction activities and undertakes contracts for construction of roads, bridges and railway in Odisha. NICPL caters majorly to the government entities such as Public Works Department (PWD) Odisha, Indian Railways, Mahanadi Coalfield ltd., among others. The company is a registered ‘Superclass’ contractor with PWD, Odisha which enables it to participate in higher value contracts floated by the government entities.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of NICPL while arriving at the rating.

Key Rating Drivers

Strengths

­Experienced management and reputed clientele base The company is promoted by Mr. Dilip Kumar Nanda who has an extensive experience of more than two decades in the civil construction industry, thereby, aiding the operations of NICPL. The company has established healthy relationships with the clientele and is registered as a superclass contractor with Public Works Department (PWD) of Odisha and has long-standing association with government bodies or public sector undertakings. Acuité believes that the extensive experience of the management and the healthy clientele relationships will continue to benefit the company going forward. Improvement in scales of operations backed by comfortable order book and steady profitability margin The company witnessed improvement in the operating income Y-O-Y and achieved revenue of Rs 165.05 Cr. in FY2024 as compared to Rs 103.09 Cr. in FY2023 and Rs 72.78 Cr. in FY2022. The improvement is on account of the timely execution of the orders. Further it has an unexecuted order book of around Rs 212.75 Cr. as on January 31, 2025 which gives revenue visibility for the medium term. The operating margin of the company stood range bound at 10.46 per cent in FY2024 as against 11.68 per cent in FY2023 and 10.91 per cent in FY2022 and PAT Margin of the company stood at 6.62 per cent in the FY2024 as against 6.30 per cent in the FY2023 and 6.18 per cent in the FY2022. Acuité believes that the operating performance of the company would improve steadily on the back of comfortable order book position and stable profitability margins. Healthy financial risk profile The company’s financial risk profile is healthy marked by comfortable net worth, low gearing and comfortable debt protection metrics. The tangible net worth of the company increased to Rs.52.59 Cr. as on March 31, 2024 as against Rs.41.67 Cr. as on March 31, 2023 and Rs 35.17 Cr. as on March 31, 2022 mainly on account of accretion to reserves. Gearing (Debt-to-Equity ratio) of the company improved and stood comfortable at 0.10 times as on March 31, 2024 as against 0.17 times as on March 31,2023. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) also improved Y-o-Y and stood comfortable at 0.48 times as on March 31, 2024 as against 0.55 times as on March 31, 2023. The comfortable debt protection metrics of the company is marked by Interest Coverage Ratio at 21.34 times and Debt Service Coverage Ratio (DSCR) at 8.26 times as on March 31, 2024 as against 6.34 times and 5.23 times as on March 31, 2023 respectively on account of repayment of debt obligations. The Net Cash Accruals/Total Debt (NCA/TD) improved Y-o-Y and stood at 2.60 times in FY2024 as against 1.17 times in FY2023 and 0.52 times in FY2022. Acuité believes that the financial risk profile of the company will remain healthy owing to improving accruals and no major debt funded capex plans.

Weaknesses

­Moderately intensive working capital management The working capital management of the company remained intensive with Gross Current Assets (GCA) of 134 days as on March 31, 2024 as compared to 174 days as on March 31, 2023. The inventory holding period stood comfortable at 6 days as on March 31, 2024 as compared to 44 days and 32 days as on March 31, 2023 and March 31, 2022 respectively. The debtor days of the company has stood at 61 days as on March 31, 2024 as compared to 50 days and 110 days as on March 31 2023 and March 31 2022 respectively. Increase in debtor’s holding is reflecting high on account of increase in security deposit which stood at Rs 16.81 Cr. in FY24 as against Rs 4.64 Cr. in FY23. The creditors holding had increased to 84 days as on March 31, 2024 as compared to 45 days and 42 days as on March 31 ,2023 and March 31, 2022 respectively. The company has not utilized fund-based limit whereas non-fund-based limit utilization stood at ~58.95 percent for the last six months ended January 2025. Acuité believes that the working capital operations of the company will remain moderately intensive over the medium term based on the nature of business High geographical concentration  The company derives majority of revenue from government projects limited to Odisha thereby reflecting higher geographic concentration. Moreover, the unexecuted order book of the company is also geographically limited to state of Odisha only. Inherent risks in tender-based businesses and intense competition in the industry Intense competition from several players, and exposure to risks arising from dependence on tenders and geographical presence restricted to Odisha, restrict NICPL's ability to scale up further. Growth in revenue and profitability depends on the company's ability to bid successfully and executes order within stipulated time frame.

Rating Sensitivities

­ Consistent improvement in scale of operation while sustaining profitability margin Deterioration in financial risk profile Working capital management Timely execution of orders

Liquidity Position

Adequate

The company’s adequate liquidity position is marked by net cash accruals of Rs 13.46 Cr. as on March 31, 2024, as against long term debt repayment of only Rs 0.89 Cr. over the same period. The current ratio stood comfortable at 2.99 times as on March 31, 2024 as compared to 3.05 times and 2.47 times as on March 31, 2023 and March 31, 2022 respectively. The company has cash and bank balance of Rs.18.66 Cr. as on March 31, 2024. The company has not utilized fund-based limit whereas non-fund-based limit utilization stood at ~58.95 percent of its working capital facility for the last six months ended January 2025. Going forward, Acuité believes the liquidity position of the company will remain adequate marked by the gradually improving net cash accruals.

Outlook

­Stable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	165.05	103.09
PAT	Rs. Cr.	10.92	6.50
PAT Margin	(%)	6.62	6.30
Total Debt/Tangible Net Worth	Times	0.10	0.17
PBDIT/Interest	Times	21.34	6.34

Status of non-cooperation with previous CRA (if applicable)

­Not applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 26 Jul 2024 Bank Guarantee (BLR) Short Term 34.50 ACUITE A3+ (Reaffirmed) Bank Guarantee (BLR) Short Term 2.26 ACUITE A3+ (Reaffirmed) Bank Guarantee (BLR) Short Term 19.00 ACUITE A3+ (Reaffirmed) Bank Guarantee (BLR) Short Term 10.00 ACUITE A3+ (Assigned) Cash Credit Long Term 15.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 15.00 ACUITE BBB | Stable (Assigned) 28 Apr 2023 Bank Guarantee (BLR) Short Term 26.74 ACUITE A3+ (Reaffirmed) Bank Guarantee (BLR) Short Term 7.76 ACUITE A3+ (Assigned) Bank Guarantee (BLR) Short Term 2.26 ACUITE A3+ (Reaffirmed) Bank Guarantee (BLR) Short Term 19.00 ACUITE A3+ (Assigned) Cash Credit Long Term 15.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 0.50 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 1.00 ACUITE BBB | Stable (Assigned) 23 Mar 2022 Bank Guarantee (BLR) Short Term 25.00 ACUITE A3+ (Assigned) Bank Guarantee (BLR) Short Term 2.26 ACUITE A3+ (Assigned) Proposed Bank Guarantee Short Term 0.35 ACUITE A3+ (Assigned) Cash Credit Long Term 15.00 ACUITE BBB | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 1.39 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 0.50 ACUITE BBB | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Union Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 34.50 Simple ACUITE A3+ | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 44.00 Simple ACUITE A3+ | Reaffirmed Federal Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE A3+ | Assigned Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BBB | Stable | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BBB | Stable | Reaffirmed Federal Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BBB | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.76 Simple ACUITE BBB | Stable | Reaffirmed

Contacts

Mohit Jain Senior Vice President - Rating Operations Divya Bagmar Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.