CRISIL has assigned its ‘BBB-/Stable’ rating to Perfact Color Digital Prints Pvt Ltd’s (PCDPL’s) bank facilities. The rating reflects PCDPL’s healthy financial risk profile, marked by robust debt protection indicators, and the benefits that the company derives from its established customer base, and healthy operating efficiency. These rating strengths are partially offset by PCDPL’s exposure to risks associated with the stabilisation of its new business segments, small scale of operations, and intense competition in the digital printing solutions industry.

Outlook: Stable
CRISIL believes that PCDPL will maintain its healthy debt protection measures over the medium term backed by healthy profitability. The outlook may be revised to ‘Positive’ if PCDPL generates higher-than-expected revenues and maintains healthy profitability. Conversely, the outlook may be revised to ‘Negative’ if its debt protection indicators decline significantly owing to larger-than-expected expenditure towards stabilisation of new divisions or if the company undertakes an aggressive debt-funded capital expenditure programme.

About the Company
PCDPL was set up as a private limited company in May 2003 by Mr. Ashwani Arya. PCDPL based in Gurgaon (Haryana) provides digital printing solutions across various verticals such as insurance, education, and designer photo albums. It operates across verticals such as variable data document processing and printing, business card printing with web-based ordering, education, and retail. Its facility is equipped with machinery from Production System Group (PSG). PSG is a division of Xerox India Ltd, which sells high-end digital printing machinery.

PCDPL reported a profit after tax (PAT) of Rs.18 million on net sales of Rs.174 million for 2008-09 (refers to financial year, April 1 to March 31) against a PAT of Rs.10 million on net sales of Rs.120 million for 2007-08.