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Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 6.00 | ACUITE BBB- | Upgraded & Withdrawn | - |
Bank Loan Ratings | 22.00 | - | ACUITE A3 | Upgraded & Withdrawn |
Total Outstanding | 0.00 | - | - |
Total Withdrawn | 28.00 | - | - |
Rating Rationale |
Acuite has upgraded and withdrawn the long term rating to 'ACUITE BBB-' (read as ACUITE triple B minus) from 'ACUITE BB' (read as ACUITE double B) and the short term rating to 'ACUITE A3' (read as ACUITE A three) from 'ACUITE A4+' (read as ACUITE A four plus ) on the Rs. 28.00 crore bank facilities of Schenck Process India Private Limited (Erstwhile Schenck Process India Limited). The withdrawal is in accordance with Acuite's policy on withdrawal of ratings as applicable to the respective facility / instrument. The rating is being withdrawn on account of request received from the company, and NOC (No Objection Certificate) received from the banker. |
About Company |
Schenck Process India Private Limited (Erstwhile Schenck Process India Limited) was incorporated in 1996 as a part of Schenck Process Group, Germany. The company follows integrated process of designing, assembling and supplying of applied measuring and process technology solutions. The manufactured portfolio is used in measuring, weighing, feeding, conveying, milling and various types of plant sequencing equipment for numerous sectors like Steel, Power & Energy, Chemicals, Performance materials and Cement etc. The company is based out of Bengaluru and managed by Mr. Rajesh Pathak, Managing Director and Ms. Guna Thantry, CFO and Director. |
About the Group |
The Indian Schenck Process group consists of Schenck Process India Private Limited (Erstwhile Schenck Process India Limited) incorporated in 1996 and Schenck Process Solutions India Private Limited (Erstwhile Stock Redler India Private Limited) incorporated in 2003. The group develops and sells full range of solutions and products such as pneumatic and mechanical conveying solutions, milling, measuring, weighing and feeding equipment, weighing/force sensors and accessories, spare parts and components, and consumables. The group is based out of Bengaluru and managed by Mr. Rajesh Pathak , Managing Director and Ms. Guna Thantry, CFO and Director. |
Unsupported Rating |
Not Applicable |
Analytical Approach |
Extent of Consolidation |
•Full Consolidation |
Rationale for Consolidation or Parent / Group / Govt. Support |
Acuité has consolidated the business and financial risk profiles of Schenck Process India Private Limited (Erstwhile Schenck Process India Limited) and Schenck Process Solutions India Private Limited (Erstwhile Stock Redler India Private Limited) to arrive at the rating. The consolidation is in the view of the similarities in the lines of business, operational & financial synergies and common management. |
Key Rating Drivers |
Strengths |
Experienced management and long track record of operations Healthy Financial Risk Profile The debt coverage indicators stood comfortable with Interest coverage ratio at 21.07 times on March 31, 2023 as against 6.74 times on March 31, 2022. Debt Service Coverage Ratio (DSCR) stood at 16.56 times on March 31, 2023 as against 5.19 times on March 31, 2022. |
Weaknesses |
Working capital intensive nature of operations |
Rating Sensitivities |
Not Applicable |
Liquidity Position |
Strong |
The Schenck group has a strong liquidity position, marked by healthy Net Cash Accruals (NCA) against no maturing debt obligations for the same period. The group generated Net Cash Accruals worth Rs. 105.88 crores in FY2023 against nil repayment obligations. The current ratio stood at 1.80 times on March 31, 2023. The average bank limit utilization stands at 66.87 percent for six months ended April 2024. The group had an unencumbered cash and bank balance of Rs. 7.34 crores on March 31, 2023. |
Outlook: |
Not Applicable |
Other Factors affecting Rating |
None |
Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
Operating Income | Rs. Cr. | 576.94 | 369.72 |
PAT | Rs. Cr. | 96.65 | 15.14 |
PAT Margin | (%) | 16.75 | 4.10 |
Total Debt/Tangible Net Worth | Times | 0.00 | 0.25 |
PBDIT/Interest | Times | 21.07 | 6.74 |
Status of non-cooperation with previous CRA (if applicable) |
Not Applicable |
Any Other Information |
None |
Applicable Criteria |
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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. |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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Contacts |
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