Press Release

Press Release

October 11, 2024

RAJENDRA SINGH KILEDAR CONSTRUCTIONS PRIVATE LIMITED
Rating Assigned and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	33.65	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	24.25	ACUITE BBB- \| Stable \| Upgraded	-
Bank Loan Ratings	28.35	-	ACUITE A3 \| Assigned
Bank Loan Ratings	65.75	-	ACUITE A3 \| Upgraded
Total Outstanding	152.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded the long term rating to ‘ACUITE BBB-’ (read as ACUITE triple B minus) from ‘ACUITE BB+’ (read as ACUITE double B plus) and short term rating to ‘ACUITE A3’ (read as ACUITE A three) from ‘ACUITE A4+’ (read as ACUITE A four plus) to the Rs.90.00 crore bank facilities of Rajendra Singh Kiledar Constructions Private Limited (RSKPL). The outlook is ‘Stable’.
Acuité has assigned the long-term rating of ‘‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating of 'ACUITE A3’ (read as ACUITE A three) on the Rs. 62 Cr. bank facilities of Rajendra Singh Kiledar Constructions Private Limited. The outlook is 'Stable'.

Rationale for rating upgrade
The rating upgrade takes into account the stable in scale of the company’s operation, improvement in EBITDA and comfortable financial risk profile. The revenue from operations of the company witnessed marginal improvement to Rs.168.58 crore in FY2024 (Prov.) as against Rs.167.31 crore in FY2023. The EBITDA Margins of the company stood at 14.70% in FY24(Prov.) against 14.31% in FY23 and the PAT Margins of the company stood at 5.59% in FY24(Prov.) against 5.73% in FY23. Further, the rating takes into consideration the long track record of operations, experienced management and adequate liquidity profile of the company and the debt protection metrics of the company remained within comfortable range. The above strengths remained underpinned by working capital intensive nature of the business and tender based operations of the company.

About the Company

Madhya Pradesh based Rajendra Singh Kiledar Constructions Private Limited (RSKCPL) was established in 1978 as a proprietorship concern, later in 2003 the constitution was changed to private limited company. The company undertakes construction of roads and highways for the government. The company is promoted by Mr. Rajendra Singh Kiledar, Mr. Shivendra Singh Kiledar and Mr. Raghavendra Singh Kiledar.

Unsupported Rating

Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

Stable business risk profile with established operations and experienced management
RSKCPL was established in 1978 as a proprietorship concern, later in 2003 the constitution was changed to private limited company. The day to day operations are managed by its managing director, Mr. Rajendra Singh Kiledar along with other director, Mr. Shivendra Singh Kiledar and Mr. Raghavendra Singh Kiledar. The management possesses experience of over three decades in the civil construction industry. The extensive experience has enabled the company forge healthy relationships with customers and suppliers. Furthermore, the revenue from operations of the company witnessed marginal improvement to Rs.168.58 crore in FY2024 (Provisional) as against Rs.167.31 crore in FY2023. The operating profit margin of the company improved to 14.70 percent in FY2024 (Provisional) as against 14.31 percent in FY2023 and 11.28 percent in FY2022 majorly on account of decline in raw material costs. The unexecuted order book of Rs. 449.03 Cr as on 30/09/2024 provides revenue visibility to the Company over the medium term. PAT Margin of company stood at 5.59 Percent. in FY24(Prov.) as against 5.73 percent in FY 23. Acuité believes that RSKCPL will continue to benefit from its experienced management and established relationships with customers and suppliers.

Above average financial risk profile
The financial risk profile of the company remains above average marked by moderate net worth, low gearing level and comfortable debt protection metrics. RSKCPL’s net worth stood at Rs. 74.97 Cr. (Provisional) as on 31st March 2024 as against Rs.63.69 Cr. as on 31st March 2023. Company follows conservative leverage policy. Gearing levels (debt-to-equity) improved by 20 bps and stood at 0.60 times as on March 31, 2024 (Provisional) as against 0.80 times in FY 2023. Improvement in Gearing Ratio in FY 24 (Prov.) is on account of profit accretions, repayment of debt and treatment of USL as quasi equity. The total debt outstanding of the company is Rs. 44.98 crore as on 31 March, 2024 (Provisional)which consists of long term bank borrowings of Rs.14.00 crore, short term working capital limit of Rs. 20.93 crore and current maturities of long term Debt Rs 10.05 crore.
Acuité believes that the financial risk profile of the company is expected to improve and remain comfortable over the medium term as the company do not have any large debt funded capex plan over the medium term.

Weaknesses

Working capital intensive nature of operations
The company has high working capital requirements, as evident from gross current assets (GCA) of 271 days in FY2024 (Prov.) as compared to 256 days in FY2023. Debtor days stood at 83 days in FY24(Prov.) as against 129 days in FY2023. Inventory days stood at 116 days in FY2024 (Prov.) as against 39 days in FY2023. Fund-based working capital limits are utilized at ~ 91 percent during the last twelve months ended March 24. Intensiveness of working capital is due to its nature of business. The company booked the majority of revenue in the last quarter of the financial year. Revenue of Rs 81.73 crore was booked in the last quarter, which is ~47 percent of the total revenue of FY 24 (Prov.). Acuite believes that the operations of the company will continue to remain working capital intensive over the medium term on account of the nature of business.

Tender base business
Major business of the entity is bagged by participating in tenders floated. The revenues of the company are directly dependent upon the quantum of contracts bagged and executed during the year. Risk become more pronounced as tendering is based on minimum amount of bidding of contracts. The company has to do tendering on competitive prices; this may affect the profitability of the company. This has resulted in fluctuating operating profit margins.

Rating Sensitivities

Improvement in scale of operations along with profitability
Timely execution of contracts.
Improvement in working capital operations.

Liquidity Position

Adequate

Company has adequate liquidity marked by net cash accruals to its maturing debt obligations, current ratio, cash and bank balance. Company generated cash accruals of Rs. 15.64 crore for FY2024 (Prov.) as against obligations of Rs. 11.75 crores for the same period. Current Ratio stood at 1.62 times as on 31 March 2024(Prov.) as against 1.42 times in the previous year. Fund based working capital limits are utilized at ~ 91 per cent during the last twelve months ended March 24. Cash and Bank Balances of company stood at Rs 0.99 crores. The liquidity of the company is expected to improve with company expected to generate cash accruals in the range of Rs. 18 to 22 Cr. against repayment of ~Rs. 10 to Rs.12 crore and absence of debt funded capex plans.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 24 (Provisional)	FY 23 (Actual)
Operating Income	Rs. Cr.	168.58	167.31
PAT	Rs. Cr.	9.42	9.58
PAT Margin	(%)	5.59	5.73
Total Debt/Tangible Net Worth	Times	0.60	0.80
PBDIT/Interest	Times	3.29	3.69

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
23 Sep 2024	Cash Credit	Long Term	4.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Secured Overdraft	Long Term	2.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Secured Overdraft	Long Term	2.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	3.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	13.25	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Secured Overdraft	Long Term	2.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Bank Guarantee (BLR)	Short Term	25.50	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	11.65	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	16.50	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	10.10	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
27 Jun 2023	Bank Guarantee (BLR)	Short Term	25.50	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	13.25	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	11.65	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	16.50	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	10.10	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	4.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)
01 Apr 2022	Cash Credit	Long Term	4.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	0.50	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	8.50	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	20.50	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	24.40	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	19.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	10.10	ACUITE A3 (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Central Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.50	Simple	ACUITE A3 \| Upgraded ( from ACUITE A4+ )
Yes Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.65	Simple	ACUITE A3 \| Upgraded ( from ACUITE A4+ )
HDFC Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	16.50	Simple	ACUITE A3 \| Upgraded ( from ACUITE A4+ )
Kotak Mahindra Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.10	Simple	ACUITE A3 \| Upgraded ( from ACUITE A4+ )
Yes Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	28.35	Simple	ACUITE A3 \| Assigned
Central Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE BBB- \| Stable \| Upgraded ( from ACUITE BB+ )
HDFC Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.25	Simple	ACUITE BBB- \| Stable \| Upgraded ( from ACUITE BB+ )
Kotak Mahindra Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB- \| Stable \| Upgraded ( from ACUITE BB+ )
Bank of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	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.	20.65	Simple	ACUITE BBB- \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE A3 \| Upgraded ( from ACUITE A4+ )
Yes Bank Ltd	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BBB- \| Stable \| Upgraded ( from ACUITE BB+ )
Kotak Mahindra Bank	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BBB- \| Stable \| Upgraded ( from ACUITE BB+ )
HDFC Bank Ltd	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BBB- \| Stable \| Upgraded ( from ACUITE BB+ )
Yes Bank Ltd	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Senior Vice President - Rating Operations

Kartik Arora
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.