Rating Rationale
Brickwork Ratings assigns ‘BWR BBB-’ & ‘BWR A3’ for the Bank Loan
Facilities aggregating ₹ 72.50 Cr of Hind High Vacuum Company Pvt Ltd.
Brickwork Ratings has assigned the following Ratings1 for the Bank Loan facilities of
Hind High Vacuum Company Pvt Ltd. (HHVCPL or the company).
Facilities
Limits(₹ Cr)
Sanctioned Proposed
Fund Based
Cash credit
Term Loan
Total Fund Based
Non Fund Based
LC
BG
Total Non-Fund Based
Sub Total (FB+NFB)
Total
30.00
-
-
5.00
30.00
5.00
34.00*
3.50*
37.50
67.50
5.00
Tenure
Long Term
Short Term
Rating
BWR BBB(Pronounced BWR Triple B
Minus)
Outlook: Stable
BWR A3
(Pronounced as BWR A Three)
(INR Seventy Two Crores and Fifty Lakhs
only)
72.50
*One way interchangeability of limits from LC to BG to the extent of 50%.
BWR has essentially relied upon the audited financials of Hind High Vacuum Company Pvt Ltd
up to FY 13 and provisional financials of FY 14 & projected financials FY 15, publicly available
information and information/clarifications provided by the firm.
The rating reflects, promoters experience in the industry, established presence in the Domestic
and International market for the past 5 decades, Recognized R&D House by Department of
Science and Technology, established customers belong to the high tech fields, favorable debt
Equity ratio with strong debt protection metrics and dealing in diversified products which are
used in various industries. The rating is, however, constrained by significant decline in
operating profit margins, marginal sales growth in FY 14, exposure to risks related to volatility
in input prices.
Background:
Hind High Vacuum Company Pvt Ltd (HHVCPL) was incorporated in the year 1965 as a Private
Limited company with its registered office located at Bangalore. HHV solar was a subsidiary
company of HHVCPL has been sold out to Chennai based company in Aug 2014. HHVCPL is
carrying on the business of making vacuum systems & components, thin film coating services
and equipment based on photovoltaic technology under three divisions namely, Vacuum
1
Please refer to www.brickworkratings.com for definition of the Ratings
www.brickworkratings.com
1
16 Oct 2014
Furnaces and systems Division, Thin Films Coatings and Services Division, Solar & Export
Equipment Division The company is a recognized R&D House by the Department of Science and
Technology, Ministry of Science & Technology since 1975 and the company gets support for
critical Technology Development. The company has received ISO certifications such as ISO
900-2000, ISO 14000 and OHSAS 18000 certifications. The certifications are recognized by
worldwide. HHVCPL manufacturing facilities are located at Peenya, Bangalore and Dabaspet.
Peenya Plant is in operation from 1975 onwards and Dabaspet plant is operating from 2005
onwards.
Financial Performance:
As per the provisional financials submitted by the company, HHVCPL’s net revenue from
operations increased by around 6% from ₹100.98 Crores in FY13 to ₹106.57 Crores in FY14. In
FY 14, revenues are comprised of around 56% of vacuum systems and pumps, 20% of plain and
metallised mineral products and rest from others. HHVCPL has achieved revenue of Rs. 35.00
crs till Aug 31, 2014. The Company has order book position of Rs. 30.05 Crores till Dec 2014.
Rating Outlook:
The rating outlook is expected to be stable over the current year. Going forward, the ability of
the company to achieve the projected turnover, improvement in profitability in the light of
volatile raw material prices and efficient working capital management - will remain key rating
sensitivities.
Analyst Contact
Relationship Contact
[email protected]
[email protected]
Phone
Media Contact
1-860-425-2742
[email protected]
Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources,
which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or
completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty
of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR
should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses
incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any
reasons.
www.brickworkratings.com
2
16 Oct 2014