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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 25.00 | ACUITE C | Downgraded | - |
| Bank Loan Ratings | 42.00 | - | ACUITE A4 | Downgraded |
| Total Outstanding Quantum (Rs. Cr) | 67.00 | - | - |
| Rating Rationale |
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Acuité has downgarded its long-term rating to 'ACUITE C (read as ACUITE C) from ‘ACUITE BBB-’ (read as ACUITE Triple B Minus ) and short term rating to 'ACUITE A4 (read as ACUITE A four) from ‘ACUITE A3’ (read as ACUITE A three) on the Rs.67.00 crore bank facilities of Suryodaya Infra Projects (I) Private Limited (SIPPL).
The rating is downgraded is on account of recent delays in servicing of debt obligations by SIPPL in their equipment loans. The rating continues to draw comfort from the experienced management and established track record of operations. |
| About the Company |
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Established in 2008, Suryodaya Infra Projects (I) Private Limited (SIPPL) is a Hyderabad (Telangana) based entity engaged in various civil construction activities primarily related to roads & bridges, irrigations, buildings, etc for both public and private sector. SIPPL, a Class I contractor, is promoted and managed by Mr. B Rajendra Prasada Rao who has around 3 decades of experience in civil construction segment.
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| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of SIPPL to arrive at the rating |
Key Rating Drivers
| Strengths |
SIPPL, a Class I civil contractor, has established presence in executing projects related to primarily roads & bridges, irrigations, buildings amongst others for both public and private sector. Mr. B Rajendra Prasada Rao, the managing director of SIPPL, has 3 decades of experience in the line of civil construction.
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| Weaknesses |
SIPPL has delayed in the repayment of the eqiupments loan facilities since last three months ended March 2023 and February 2023, as per the banker confirmation.
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| Rating Sensitivities |
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| Material covenants |
| None |
| Liquidity Position: Poor |
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The liquidity position of the company is marked poor on account of recent past instances of delays in servicing of debt obligation.
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| Outlook: |
| Not applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 22 (Actual) | FY 21 (Actual) |
| Operating Income | Rs. Cr. | 158.52 | 99.55 |
| PAT | Rs. Cr. | 7.62 | 4.91 |
| PAT Margin | (%) | 4.80 | 4.93 |
| Total Debt/Tangible Net Worth | Times | 0.67 | 0.37 |
| PBDIT/Interest | Times | 4.35 | 4.35 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• 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 |
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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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