Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 35.00 ACUITE BB+ | Stable | Assigned - RBI
Bank Loan Ratings 0.00 95.33 ACUITE BB+ | Stable | Reaffirmed - RBI
Bank Loan Ratings 0.00 0.71 Not Applicable | Withdrawn - RBI
Total Outstanding 0.00 130.33 - - -
Total Withdrawn 0.00 0.71 - - -
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
 

Rating Rationale

­Acuité has reaffirmed its long-term rating of ‘ACUITE BB+’ (read as ACUITE Double B Plus) on the Rs.95.33 Cr. bank facilities of Saifco Hillcrest Hotels Private Limited (SHHPL). The outlook is ‘Stable’.
­
Acuité has also assigned its long-term rating of ‘ACUITE BB+’ (read as ACUITE Double B Plus) on the Rs.35.00 Cr. bank facilities of Saifco Hillcrest Hotels Private Limited (SHHPL). The outlook is ‘Stable’.

Acuité has also withdrawn its rating on the proposed long-term bank facilities of Rs.0.71 Cr. of Saifco Hillcrest Hotels Private Limited without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the issuer.
The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for rating:


The company has migrated from the status of ‘Issuer Not Cooperating’. The rating considers the company’s improved operating performance in FY2025, marked by growth in scale of operations supported by higher occupancy, ARR and RevPAR, resulting in healthy revenues and profitability. Although in FY26, the revenue of the company declined due to lower occupancy and realisations following the Pahalgam disturbance. Although margins remained relatively stable. The rating considers the change in financial risk profile especially the capital structure arising from repayment of unsecured loans availed from Saifco Cements Private Limited (now J.K. Cement Saifco Private Limited) through bank borrowings. This has resulted in significant increase in the gearing ratio. Also, there was an  increase in working capital requirements driven by higher debtor levels. The rating continues to factor in the company’s ongoing capacity expansion plans and its adequate liquidity position supported by internal accruals and extended repayment tenor of the loans sanctioned under “ rehabilitation Package – 2025 for borrowers hit by disturbances” by lenders. Further, the rating derives support from the promoter’s experience in the hospitality sector and the upgrade of the hotel to the ‘Taj’ brand expected to improve the operating performance.


Key Rating Drivers

Rating Sensitivities

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 80.56 76.16
PAT Rs. Cr. 30.78 25.36
PAT Margin (%) 38.21 33.30
Total Debt/Tangible Net Worth Times 2.55 13.81
PBDIT/Interest Times 4.73 4.17
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.