Rating Rationale
Brickwork Ratings reaffirms ‘BWR BBB’ for Long Term and ‘BWR A3+’ for
Short Term facilities for the Bank Loan Facilities of ₹ 52.30 Cr of Kritika
Wires Pvt. Ltd.
Brickwork Ratings (BWR) has reaffirmed the following Rating1 for the Bank Loan Facilities
aggregating to ₹ 52.30 Cr of Kritika Wires Pvt. Ltd (KWPL or the ‘Company’).
Facility
Previous
Limit
(₹ Cr)
Present
Limit
(₹ Cr)
36.25
31.50
Tenure
Rating
Rating
History
(December
2013)
(Fund based)
Cash Credit
Long
Term
Term Loan
8.70
4.80
BWR BBB
(Pronounced BWR
Triple B)
Outlook: Stable
(Reaffirmed)
PC
-
(5.00)
8.00
8.00
BG
8.00
8.00
Total
60.95
52.30
Outlook:
Stable
Short
Term
BWR A3+
(Pronounced BWR
A Three Plus)
(Non-Fund based)
LC
BWR BBB
(Pronounced
BWR Triple B)
Short
Term
(Reaffirmed)
BWR A3+
(Pronounced
BWR
A Three Plus)
INR Fifty Two Crores & Thirty Lakhs only
Annexure-I provides details of the bank facilities
BWR has principally relied upon the audited financial results of KWPL’s for FY12, FY13 & FY 14,
and projected financials for FY15, information/clarification provided by the Company and other
publicly available information.
1
Please refer to www.brickworkratings.com for definition of the Ratings
www.brickworkratings.com
1
20 Feb 2015
The rating has factored, inter alia, the promoters experience in the wire industry, Company’s
diversified product range, ISO 9001:2008 Certifications, infusion of capital over the years and
strong order book. The rating is constrained by high receivables, low profitability margins and
intense competition in the region both from organised and unorganised sectors.
Company Profile
Kritika Wires Private Limited (KWPL) was incorporated on 31st May 2004 with the intent of
setting up a Wire Drawing & Deformed Bar Manufacturing Unit at Dhulagarh Industrial Park,
Kolkata. The Company commenced its operation from 1st January 2005. It is engaged in
manufacturing & supplying different types of Galvanized & Non Galvanized Wires. The
Company has two manufacturing units located at Dhulagarh Industrial Park, Kolkata. The total
manufacturing capacity is 44800 MT/year. The Company also has its own inhouse research
Facilities and is ISO 9001:2008 certified.
It sells its products mainly to Eastern India and also sells to other Liaising Agents in all Capital
Cities in India.
Financials
KWPL’s net sale has grown by 40% during FY14 from ₹ 105.75 Crs in FY13 to ₹ 148.42 Crs in
FY14. The Company has reported a net profit margin of 0.57 per cent and operating margin of
4.70 per cent for FY14. The total Net Worth stood at ₹ 27.34 Crs as on 31-3-2014.
Rating Outlook
The rating reflects the position of the company in the manufacturing segment of the industry it
caters to. Going forward, ability of the company to achieve higher turnover, improving
profitability 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.
www.brickworkratings.com
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20 Feb 2015
Kritika Wires Private Limited
Annexure I: Details of the bank facilities rated
Facility
Tenure
Fund Based
Cash Credit
Long Term
State bank of India
Karnataka Bank
(April, 2014)
(Aug, 2014)
16.50
15.00
4.80
-
-
(5.00)
4.00
4.00
4.00
4.00
29.30
23.00
Term Loan
PC
Short Term
Non Fund Based
LC
BG
Short Term
Sub Total
Total
www.brickworkratings.com
₹ 52.30 Cr
3
20 Feb 2015