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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 6.00 | ACUITE C | Reaffirmed | - |
| Bank Loan Ratings | 29.00 | - | ACUITE A4 | Reaffirmed |
| Total Outstanding | 35.00 | - | - |
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Rating Rationale |
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Acuite has reaffirmed its long-term rating to "ACUITE C" (read as ACUITE C) and short-term rating to "ACUITE A4" (read as ACUITE A four) on the Rs.35 Crore bank facilities of PEYUSH TRADERS (PT). Rationale for the rating The rating is reaffirmed on account of invocation of bank guarantees of PT in recent past as confirmed by its banker. |
| About the Company |
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Peyush Traders (PT), established in 1999, is a Mumbai-based proprietorship firm engaged in providing services to Indian railways. Services include provision of AC Coach Attendants (ACCAs), setting up and/or operating mechanized laundries for washing, drying and ironing linen used in the AC coaches, onboard housekeeping and others. New services started by the firm in February, 2021 are more over the food industry such as railway running room for railway staff, restaurants Nearby Railway Station in Rail yard (Inside the Bogie) and watering Inside the Rail bogie. The day to day operations is managed by its proprietor, Mr. Rakesh P. Bhatnagar
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Acuité has taken a standalone view of the business and financial risk profile of PT to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Experienced management
PT commenced operations from 1999. The firm is promoted by its proprietor, Mr. Rakesh P. Bhatnagar who has an experience of over two decades of managing Indian Railway’s contracts. He was earlier engaged in trading of electronics appliances to Indian Railways. Post which he started executing service-related contracts of Indian Railways. Acuité believes that the firm will continue to benefit from its experienced management and established relationships with Indian Railways. |
| Weaknesses |
| Average financial risk profile
The financial risk profile of the company remained average marked by improving net worth, moderate gearing and healthy debt protection metrics. The net worth of Rs.12.47 Cr as on FY2023 as against Rs.11.23 Cr as on FY2022. The gearing (debt-equity) stood at 1.86 times as on FY2023 as against 1.59 times as on FY2022. The total debt of Rs.23.17 Cr as on FY2023 consists of long-term of Rs.11.48 Cr. and short term of Rs.11.69 Cr. of bank borrowings. The interest coverage ratio stood at 2.14 times for FY2023 as against 1.90 times for FY2022. The DSCR stood at 2.14 times for FY2023 as compared to 1.90 times for FY2022. The Net Cash Accruals to Total debt stood at 2.56 times for FY2023 as against 2.07times for FY2022. The Total outside liabilities to Tangible net worth stood high at 2.65 times for FY2023 as against 2.32 times in FY2022. Tender based business Major business is bagged through open tenders. Hence, the revenue earned is directly dependent upon the quantum of contracts bagged and executed during the year. Risk becomes more pronounced as tendering is based on the minimum amount of biding of contracts. The firm has to bid for tenders on competitive prices; this may affect the profitability of the firm. This has resulted in fluctuating operating profit margins. However, this risk has been partially mitigated by the extensive experience of the proprietor. On going delay in servicing of debt obligations There are instances of invocation of bank guarantee of PT in recent past. |
| Rating Sensitivities |
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| All Covenants |
| None |
| Liquidity Position |
| Poor |
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The company has a poor liquidity profile as reflected from recent instances of invocation of bank guarantee.
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| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 55.51 | 42.22 |
| PAT | Rs. Cr. | 2.08 | 1.59 |
| PAT Margin | (%) | 3.75 | 3.77 |
| Total Debt/Tangible Net Worth | Times | 1.86 | 1.59 |
| PBDIT/Interest | Times | 2.14 | 1.90 |
| 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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