YATIN STEELS INDIA PRIVATE LIMITED

Transcription

1 Prss Rlas YATIN STEELS INDIA PRIVATE LIMITED 09 March, 2018 Rating Raffirmd Total Bank Facilitis Ratd* Long Trm Rating Short Trm Rating * Rfr Annxur for dtails Rs Cr. SMERA BBB+ / Outlook: Stabl Rating Rational SMERA has raffirmd long-trm rating of SMERA BBB+ (rad as SMERA tripl B plus ) and short trm rating of '' (rad as SMERA A two) on th Rs cror bank facilitis of YATIN STEELS INDIA PRIVATE LIMITED. Th outlook is 'Stabl'. YSIPL was incorporatd in 2004 to tak ovr th xisting businss of Yatin Stls which was st up in Th company, promotd by Mr. Yatin Khanna is ngagd in th trading of iron and stl products mainly hot and cold rolld flat products and galvanisd shts that find application in consumr durabls, pips and tubs, railways, among othrs. Ky Rating Drivrs Strngths Halthy financial risk profil Th financial risk profil of YSIPL is halthy as garing stands at 0.19 tims as on March 31, Total dbt includs intrst baring unscurd loans of around Rs crors as on March 31, 2017 (prvious yar Rs crors) which ar not subordinatd to bank dbt. Th managmnt pays nominal intrst of around 5-6% on th sam. ICR stands at 3.11tims for FY2017. Efficint working capital managmnt and comfortabl liquidity position YSIPL procurs matrial mostly against confirmd ordrs. This nabls to mitigat th risk of invntory losss as prics of iron & stl ar highly volatil. Furthr, all sals of YSIPL ar against LC. Thus, thr is no risk of rcivabls. Th company dosn't hav any bad dbts in th past. Improvmnt in profit margins EBIDTA margins of YSIPL hav improvd to 3.68% in FY2017 ovr 2.07% in FY2016. Furthr, PAT margins hav also improvd marginally at 1.87% in FY2017 compard to 1.28% in FY2016. ROCE stood at 37.64% in FY2017. Nt profit margin is supportd by non oprating incom viz. Intrst rcivd on FD to th tun of ~Rs. 10 crors. Waknsss Modration of Rvnus Th company rportd a dclin of 16.84% to Rs cr in rvnus in FY17 compard to that of Rs cr in FY16 owing to th drop in stl dmand and prics. This is aftr th strong dmand rportd by th company in FY16. Whil th 6m FY18 rvnu stood at Rs cr, th sluggishnss of rvnu growth is xpctd to continu in th mdium trm. Forign xchang fluctuation risk Th company imports ~13% of its raw matrials worth Rs. 171 cr and slls th products domstically, thus is xposd to forign xchang fluctuation risk. Although, th company hdgs th imports but th sam covrs only a small part of th total xposur. SMERA Ratings Limitd Rgistrd Offic: 102, Sumr Plaza, Marol Maroshi Road, Marol, Andhri (East), Mumbai CIN: U74999MH2005PLC SEBI Prmannt Rgistration No.: IN / CRA / 006 / 2011

2 Analytical Approach SMERA has takn a standalon viw of th financial and businss risk profil of th ratd ntity. Outlook: Stabl SMERA blivs that YSIPL will continu to bnfit ovr th mdium trm from its stablishd prsnc in th stl trading industry. Th outlook may b rvisd to 'Positiv' in cas th company rgistrs sustaind growth in rvnus whil improving margins. Convrsly, th outlook may b rvisd to 'Ngativ' in cas of dtrioration in YSIPL'sprofit margins on account of advrs forx fluctuations. About th Ratd Entity - Ky Financials Unit FY17 (Actual) FY16 (Actual) FY15 (Actual) Oprating Incom Rs. Cr EBITDA Rs. Cr PAT Rs. Cr EBITDA Margin (%) PAT Margin (%) ROCE (%) Total Dbt/Tangibl Nt Worth Tims PBDIT/Intrst Tims Total Dbt/PBDIT Tims Gross Currnt Assts (Days) Days Status of non-coopration with prvious CRA (if applicabl) NA Any othr information Critria Dfault Rcognition - Critria For Rating Of Banks And Financial Institutions - Trading Entitis - on complxity lvls of th ratd instrumnt Rating History (Upto last thr yars) Dat 30-Nov-2016 Nam of Instrumnt / Facilitis Trm Amount (Rs. Cr.) Ratings/Outlook Lttr of Crdit Short Trm INR Proposd Working Capital Dmand Loan Long Trm INR 36 SMERA BBB+ / Stabl Cash Crdit Long Trm INR 12.5 SMERA BBB+ / Stabl Lttr of Crdit Short Trm INR 399 SMERA Ratings Limitd Rgistrd Offic: 102, Sumr Plaza, Marol Maroshi Road, Marol, Andhri (East), Mumbai CIN: U74999MH2005PLC SEBI Prmannt Rgistration No.: IN / CRA / 006 / 2011

3 05-Oct-2015 Proposd Bank Guarant Long Trm/ Short Trm INR 36 SMERA BBB+ / Stabl SMERA Ratings Limitd Rgistrd Offic: 102, Sumr Plaza, Marol Maroshi Road, Marol, Andhri (East), Mumbai CIN: U74999MH2005PLC SEBI Prmannt Rgistration No.: IN / CRA / 006 / 2011

4 *Annxur Dtails of instrumnts ratd Nam of th Facilitis Cash Crdit Lttr of crdit Lttr of crdit Lttr of crdit Lttr of crdit Lttr of crdit Lttr of crdit Proposd Cash Crdit Lttr of crdit Dat of Issuanc Coupon Rat Maturity Dat Siz of th Issu (Rs. Cr.) Ratings/Outlook SMERA BBB+ / Stabl SMERA BBB+ / Stabl 2.00 SMERA BBB+ / Stabl Contacts Analytical Suman Chowdhury Prsidnt - SMERA Bond Ratings Tl: suman.chowdhury@smra.in Rating Dsk Varsha Bist Managr - Rating Dsk Tl: varsha.bist@smra.in Abhishk Vrma Managr - Rating Oprations Tl: abhishk.vrma@smra.in ABOUT SMERA SMERA Ratings Limitd Rgistrd Offic: 102, Sumr Plaza, Marol Maroshi Road, Marol, Andhri (East), Mumbai CIN: U74999MH2005PLC SEBI Prmannt Rgistration No.: IN / CRA / 006 / 2011

5 SMERA Ratings Limitd is a joint initiativ of SIDBI, D&B and lading public and privat sctor banks in India. SMERA is rgistrd with SEBI, accrditd by RBI as an Extrnal Crdit Assssmnt Institution (ECAI), undr BASEL-II norms for undrtaking Bank Loan Ratings. SMERA Bond Ratings is a division of SMERA Ratings Limitd rsponsibl for ratings of bank facilitis, and capital markt/mony markt dbt instrumnts such as Bonds, Dbnturs, Commrcial Paprs, Fixd Dposits, Crtificat of Dposits tc.. For mor dtails, plas visit SMERA Ratings Limitd Rgistrd Offic: 102, Sumr Plaza, Marol Maroshi Road, Marol, Andhri (East), Mumbai CIN: U74999MH2005PLC SEBI Prmannt Rgistration No.: IN / CRA / 006 / 2011

6 Disclaimr: A SMERA rating dos not constitut an audit of th ratd ntity and should not b tratd as a rcommndation or opinion that is intndd to substitut for a financial advisr's or invstor's indpndnt assssmnt of whthr to buy, sll or hold any scurity. SMERA ratings ar basd on th data and information providd by th issur and obtaind from othr rliabl sourcs. Although rasonabl car has bn takn to nsur that th data and information is tru, SMERA, in particular, maks no rprsntation or warranty, xprssd or implid with rspct to th adquacy, accuracy or compltnss of th information rlid upon. SMERA is not rsponsibl for any rrors or omissions and spcially stats that it has no financial liability whatsovr for any dirct, indirct or consquntial loss of any kind arising from th us of its ratings. SMERA ratings ar subjct to a procss of survillanc which may lad to a rvision in ratings as and whn th circumstancs so warrant. Plas visit our wbsit ( for th latst information on any instrumnt ratd by SMERA. SMERA Ratings Limitd Rgistrd Offic: 102, Sumr Plaza, Marol Maroshi Road, Marol, Andhri (East), Mumbai CIN: U74999MH2005PLC SEBI Prmannt Rgistration No.: IN / CRA / 006 / 2011