Press Release

Press Release

November 20, 2025

UNITED TELELINKS BANGALORE LIMITED
Rating Upgraded and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	1.00	ACUITE BBB- \| Upgraded & Withdrawn	-
Bank Loan Ratings	50.00	Not Applicable \| Withdrawn	-
Bank Loan Ratings	134.00	-	ACUITE A3 \| Upgraded & Withdrawn
Bank Loan Ratings	115.00	-	Not Applicable \| Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	300.00	-	-

Rating Rationale

Acuite has upgraded and withdrawn its long-term rating to ‘ACUITE BBB-’(read as ACUITE triple B Minus) from ‘ACUITE BB’ (read as ACUITE double B) and short term rating to ‘ACUITE A3’ (read as ACUITE A three) from ‘ACUITE A4+’ (read as ACUITE A Four Plus) on Rs. 135 crore bank facilities of United Telelinks Bangalore Limited(UTBL).
The rating has been withdrawn on account of the request received from the company and NOCs (No Objection Certificates) received from the respective bankers.
Acuite has also withdrawn the long-term facility of Rs.50 Crore and short-term facilities of Rs.115 crore without assigning any rating as it is a proposed bank facility of United Telelinks Bangalore Limited(UTBL). The rating has been withdrawn on account of the request received from the company .

The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility.

The Company has provided information, leading to transition from Issuer Not Co-operating (INC since 2022) to a regular issuer.

Rationale for Upgrade:
United Telelinks Bangalore Limited (UTBL), promoted by an experienced industry professional, has an established operational track record of over two decades in mobile manufacturing and distribution. The company has a steady revenue profile over the years upto FY25 with an exceptional year in FY24 where company generate one-time high revenues due to execution for a high value order. Profitability remains subdued owing to the trading nature of business and concentration risk, though liquidity and financial risk profile are strong, supported by a debt- free status, healthy net worth, and adequate cash reserves. Working capital management is moderate but expected to improve with continued monitoring of receivables.

About the Company

United Telelinks Bangalore Limited (UTBL) is promoted by Mr. Sudhir Hasija who has an experience of over two decades in electronic industry and is engaged in manufacturing and trading of mobile phones. The company was established in 1994 and based out of Bangalore. The company mainly engaged in business of trading and distribution of mobile phones, TVs, Laptops, Headsets, speakers etc brands such as Vivo, Huawei, Realme, Oppo, Samsung among others. The company manufactures mobiles under brand name, ’Karbonn’ with manufacturing facility located at Tirupati, Andhra Pradesh which forms a small portion in its revenue.

Unsupported Rating

Not Applicable.

Analytical Approach

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

Key Rating Drivers

Strengths

Diversified Portfolio Across Brands:
UTBL has established a diversified portfolio by distributing mobile phones for brands like Vivo, Realme, and Oppo, contributing to consistent revenue growth. The company also executes one-time orders for government and non-government entities, resulting in significant annual revenue spikes. With over three decades of experience in the mobile industry and a strong distribution network in southern markets, UTBL has formed relationships with large retail businesses, enabling it to balance revenue fluctuations across different brands and segments, thereby enhancing its overall business profile.

Healthy Financial Risk Profile:
The Financial risk profile of the company was marked by healthy net worth and capital structure and coverage indicators. The Net worth of the Company increased to Rs.738.06 crore in FY 25(prov) as compared to Rs.715.53 crore in FY 24 on account of internal accruals. The Company has no short term and long term debt outstanding as on 31st March'2025(prov). Debt protection metrics stood strong with ICR and DSCR stood at 131.07 times and 102.52 times as on FY 25 (prov). TOL/TNW stood at 0.05 times as on FY 25(prov). Acuite believes that, financial risk profile of the Company will remain healthy In the medium term in absence of any debt funded capex plan.

Moderate Working Capital Management:
UTBL’s working capital position remained moderate in FY2025 (prov.), as indicated by an increase in GCA days to 96 day from 70 day in FY2024, primarily due to elongated debtor days. The rise in debtor days to 41 day in FY 25 (prov) from 29 days in FY 24 was largely on account of higher year-end revenue booking, though around 57% of receivables remain within the stipulated credit period of 25–30 days. Inventory levels were stable with marginal increase to 7 days from 5 days, while creditor days improved significantly to 5 from 18, reflecting better payables management. Acuité believes that working capital management is expected to improve further, supported by constant monitoring of receivables.

Weaknesses

Decline in Operating Performance:
The company has a steady revenue profile over the years upto FY25 with an exceptional year in FY24 where company generate one-time high revenues due to execution for a high value order. UTBL’s operating revenue witnessed a decline to Rs.1,824.78 crore in FY2025 (provisional) from Rs.3,844.20 crore in FY2024 and Rs.1801.34 crore in FY23. The EBITDA margin remained thin and slightly decreased to 1.08% in FY2025 (provisional) from 1.11% in FY2024, influenced by the inherent nature of the trading business and customer concentration, with 68% of revenue coming from the top four customers. However, the PAT margin improved to 1.25% in FY2025 (provisional) from 1.14% in FY2024. UTBL has received an order related to the manufacturing of setup boxes for SunDirect, which UTBL will be executing through subcontractor. Further, UTBL has recorded Rs.443.74 crore as revenues of Q1FY26. Acuite believes the operating performance of the company will improve, backed by new orders received related to manufacturing sun direct setupboxes.

Highly Competitive Industry:
In the highly competitive mobile phone and electronics industries, UTBL faces risks from rapid technological changes and shifting consumer preferences, prompting the company to diversify its product portfolio to various brands. This strategy has led to revenue growth, but intense competition has constrained UTBL's margin expansion due to inherent nature of trading business.

Rating Sensitivities

Not Applicable.

Liquidity Position

Strong

Liquidity profile of UTBL was strong marked by net cash accruals of Rs.25.48 crore in FY 25 (prov) as against nil debt obligation. The company maintained unencumbered cash balances of Rs.77.71 Cr. as on March 31, 2025 (prov). The Current ratio stood at 7.57 times as on 31st March,2025(prov). Acuite believes, that the liquidity of the company is likely to remain strong over the medium term on account of improvement in net cash accruals and absence of any debt funded capex plan.

Outlook:Not Applicable

Other Factors affecting Rating

None.

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	1,824.78	3,844.20
PAT	Rs. Cr.	22.80	43.69
PAT Margin	(%)	1.25	1.14
Total Debt/Tangible Net Worth	Times	0.00	0.00
PBDIT/Interest	Times	131.07	68.21

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
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
20 Mar 2025	Proposed Short Term Bank Facility	Short Term	115.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
	Letter of Credit	Short Term	74.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
	Letter of Credit	Short Term	60.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
	Proposed Cash Credit	Long Term	50.00	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
	Cash Credit	Long Term	1.00	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
27 Dec 2023	Proposed Short Term Bank Facility	Short Term	115.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
	Letter of Credit	Short Term	74.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
	Letter of Credit	Short Term	60.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
	Proposed Cash Credit	Long Term	50.00	ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	1.00	ACUITE BB+ (Reaffirmed & Issuer not co-operating*)
12 Oct 2022	Proposed Short Term Bank Facility	Short Term	115.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Letter of Credit	Short Term	74.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Letter of Credit	Short Term	60.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Proposed Cash Credit	Long Term	50.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	1.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ \| Stable)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
INDUSIND BANK LIMITED	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE BBB- \| Upgraded & Withdrawn ( from ACUITE BB )
INDUSIND BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	74.00	Simple	ACUITE A3 \| Upgraded & Withdrawn ( from ACUITE A4+ )
IDBI Bank Ltd.	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	60.00	Simple	ACUITE A3 \| Upgraded & Withdrawn ( from ACUITE A4+ )
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	Not Applicable\|Withdrawn
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	115.00	Simple	Not Applicable\|Withdrawn

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Shreya Banerjee
Analyst-Analytical 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.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.