Rating Rationale
Brickwork Ratings revises the rating to ‘BWR BB+’ & ‘BWR A4+’ the Bank
Loan Facilities of V R Patil Vividh Vidyut Nirman Pvt Ltd (VRPVVNPL)
Brickwork Ratings (BWR) has upgraded the Ratings1 to BWR BB + with a stable outlook for
the long term bank loan facilities of Rs.11.65 Crores and BWR A4+ for the short term bank
loan facility of Rs. 25.25 Crores of V R Patil Vividh Vidyut Nirman Pvt Ltd (‘VRPVVNPL’ or ‘the
Company’ )
Facility
( ₹Crores)
Cash
Credit
Proposed Sanctioned
Present
Previous previous
Tenure
Limits
Limits
limits
10.00
10.00
1.50
Special
Line
of
Credit
Term
Loan
Bank
Guarantee
Letter
Credit
Total
Rating
Revised
History
Rating*
(Sept 2013)
of
-
10.00
1.50
0.23
21.00
16.50
16.50
8.75
8.75
8.75
36.98
BWR BB +
(BWR Double
B Plus)
(Revised)
Outlook:
Stable
Short
term
BWR A4
(BWR A
Four)
BWR A4 +
(BWR A
Four Plus)
0.15
0.23
39.98
Long
Term
BWR BB
(BWR
Double B)
Outlook:
Stable
INR Thirty Six Crores and Ninety
Lakhs Only
36.90
BWR has principally relied upon the audited financial results up to FY14 and projected
financials of FY15 and FY 16 of VRPVVNPL, publicly available information and
information/clarification provided by the Company management.
The rating has factored, inter alia, the promoters’ vast experience in the electrical installation
and civil construction work in Karnataka, comfortable order book position from GESCOM and
other Government departments and well established client base. The rating is constrained by
1
Please refer to www.brickworkratings.com for definition of the Ratings
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1
10 Feb 2015
small size of operations restricted to Karnataka Region only, low profit margins, intense
competition from unorganized players and high dependence on Government contracts.
Company Background
In the year 1987, Sri. Veernagouda Patil has established the electrical contract business. With
the growth in business, during 2009, he reconstituted the business entity into a partnership
firm, M/s. V R Patil & Associates. Subsequently the partnership firm was converted into a
Private Limited Company on 08.02.2013 and the name was changed to M/s V R Patil Vividh
Vidyuth Nirman Private Ltd . The company has got SUPER GRADE ELECTRICAL LICENCE,
and is among the top 15 contractors in the state.
The Company executes work orders on turnkey basis mainly of GESCOM. The company has
diversified its activities to include civil contract work and has executed orders for Karnataka
State Housing Corporation Ltd and Department of Horticulture for construction of office
building and quarters.
Management Profile
Sri.Veernagouda Patil, promoter of the company has more than 25 years of experience in the
line of electrical and civil contract business. Along with Sri.S.R.Patil and other family members
he manages the affairs of the company.
Financial Performance
The company has been achieving consistent revenue growth. In the FY 14 the Company’s gross
sales was Rs.57.83 Crs compared to Rs.23.91 Crs in the FY13. The net profit of the Company was
Rs.1.97 Crs in FY14 compared to Rs.0.97 Crs in FY13. The networth of the Company was at
Rs.6.27 Crs for FY 14.
Rating Outlook
Going forward, the ability of VRPVVNPL to increase its scale of operations and improve its
profitability, to execute the current order book on time , manage its working capital cycle
effectively and sustain the favorable capital structure will be the 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.
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2
10 Feb 2015