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CRISIL has assigned its ‘BB+/Stable/P4+’ ratings to the bank facilities of Gandhi Automations Pvt Ltd (Gandhi). The ratings reflect Gandhi’s low net worth and small scale of operations, and limited financial flexibility because of large working capital requirements. These rating weaknesses are partially offset by the benefits that Gandhi derives from its established market position in the entrance automation systems segment, with a wide distribution network and strong customer base, and moderate financial risk profile marked by above-average debt protection metrics.
Outlook: Stable
CRISIL believes that Gandhi will sustain its business risk profile led by its leading market position in entrance automation systems and its wide distribution network. The outlook may be revised to ‘Positive’ if Gandhi increases its scale of operations significantly, while sustaining its profitability and financial risk profile. Conversely, the outlook may be revised to ‘Negative’ if the company undertakes a large debt-funded capital expenditure programme, thereby adversely affecting its capital structure.
About the Company
Incorporated in 2003 and promoted by Mr. Samir Gandhi and Mr. Kartik Gandhi, the Mumbai (Maharashtra) based Gandhi is a distributor of entrance automation systems. The company has a wide product range comprising doors, gates, rolling shutters, and bay loaders. It is the exclusive all-India distributor for European manufacturers of entrance automation and warehouse equipment systems, namely Ditec SpA, Campisa Srl, OMG SpA, Alulux Beckhoff GmbH, Saima Sicurezza SpA, and Gaposa Srl. Gandhi has over 15 sales offices across India.
Gandhi reported a profit after tax (PAT) of Rs.9.2 million on net sales of Rs.227.2 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of Rs.12.1 million on net sales of Rs.187.0 million for 2007-08.
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Media Contacts
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Analytical Contacts
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CRISIL Rating Desk
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Mitu Samar
Head, Market Development & Communications
CRISIL Limited
Tel: +91-22- 3342 1838
Email: msamar@crisil.com
Tanuja Abhinandan
Market Development & Communications
CRISIL Limited
Tel: +91-22-3342 1818
Email: tabhinandan@crisil.com
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Gurpreet S Chhatwal
Director - CRISIL Ratings
Tel: +91-11-4250 5100
Email: gchhatwal@crisil.com
Manish Kumar Gupta
Senior Manager - CRISIL Ratings
Tel: +91-11-4250 5100
Email: mkgupta@crisil.com
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Email: CRISILratingdesk@crisil.com
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Disclaimer: A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. Ratings are revised as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings’ rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (+91 22) 3342 3000.
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