Press Release

Press Release

September 18, 2025

N R CONSTRUCTIONS
Rating Downgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	1.50	ACUITE C \| Downgraded	-
Bank Loan Ratings	15.00	ACUITE D \| Downgraded	-
Bank Loan Ratings	21.00	-	ACUITE A4 \| Downgraded
Total Outstanding	37.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has downgraded its long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BB’ (read as ACUITE Double B) on the Rs.15.00 Cr bank facility and its short-term rating to ‘ACUITE A4’ (read as ACUITE A four) from ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.21.00 Cr. bank facility of N R Constructions (NRC).

Further, Acuité has downgraded its long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BB’ (read as ACUITE Double B) on the Rs.1.50 Cr bank facility of NRC.

Rationale for Rating Downgrade
The downgrade is on account of continuous overdrawals in the cash credit account for more than 30 days in the month of January 2025, as confirmed from the banker's written feedback.

About the Company

Incorporated in 1998, Hyderabad based N R Constructions is a partnership firm engaged in civil construction business. The partners of the companies are Mr. Alluri Narayana Raju, Mr. Alluri Ramanuja Raju, Mr. Alluri Krishnam Raju, Mr. Alluri Madhava Varma, Mr. Alluri Srinivasa Raju, Mr. Alluri Srirama Varma and Mr. Alluri Ravi Varma.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone view of the business and financial risk profile of NRC to arrive at the rating.

Key Rating Drivers

Strengths

Experienced partners and established track record of operations
N R Constructions (NRC) is a partnership firm incorporated in 1998 by Mr. Narayana Raju along with his brothers. The firm executes civil contracts involving irrigation works, building, roads, bridges and other civil works primarily from government clientele. The firm’s management is supported by team of professionals with an adequate experience in executing civil contract works. The experience of the partners has helped the firm in maintain long term relationship with its stake holders.

Weaknesses

Instance of overdrawing in the cash credit account
There is an instance of overdrawing in the cash credit account for more than 30 days in the month of January 2025, as confirmed from the banker's written feedback.

Rating Sensitivities

No continuous overdrawing in the cash credit account for more than 30 days.

Liquidity Position

Poor

The firm's liquidity position is poor marked by continuous overdrawing in the cash credit account.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	102.92	202.45
PAT	Rs. Cr.	4.18	12.63
PAT Margin	(%)	4.06	6.24
Total Debt/Tangible Net Worth	Times	0.52	0.32
PBDIT/Interest	Times	3.70	11.97

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

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
30 Apr 2025	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
30 Apr 2025	Secured Overdraft	Long Term	7.50	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
07 Feb 2024	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A4+ (Assigned)
07 Feb 2024	Secured Overdraft	Long Term	7.50	ACUITE BB+ \| Stable (Assigned)

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.	21.00	Simple	ACUITE A4 \| Downgraded ( from ACUITE A4+ )
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 D \| Downgraded ( from ACUITE BB )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.50	Simple	ACUITE C \| Downgraded ( from ACUITE BB )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
Associate 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.