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CRISIL has assigned its ‘BBB-/Stable/P3’ ratings to the bank facilities of Tamra Dhatu Udyog Pvt Ltd’s (TDUPL) bank facilities. The ratings reflect the promoters’ experience in the copper trading industry, and its favourable relationships with suppliers. These rating strengths are partially offset by the company’s exposure to risks associated with volatility in prices of its commodity-like products and its working-capital-intensive operations.
Outlook: Stable
CRISIL believes that the company will benefit from its promoters’ industry experience and strong relationships with vendors, over the medium term. The outlook may be revised to ‘Positive’ if the company’s scale of operations increase and profitability improves significantly, leading to increase in its cash accruals. Conversely, the outlook may be revised to ‘Negative’ if the company’s financial risk profile deteriorates, driven mostly by increased pressure on revenues and profitability.
About the Company
Set up in 2006 by Mr. Ram Kumar Singhee and his cousin Mr. Mahesh Kumar Singhee, TDUPL trades in metals, mainly copper; the company also trades in zinc, lead, and brass. The company has trading/marketing offices in Kolkata, Delhi, Bhiwandi (Rajasthan), and Mumbai. TDUPL procures copper largely from the domestic market, some are procured from Minerals and Metals Trading Corporation of India (MMTC), which imports copper. TDUPL has recently started direct imports.
D M Company, a proprietorship concern, owned by Mr. Ram Kumar Singhee’s father has merged with Tamra Dhatu with effect from April 1, 2010. The firm trades in copper products such as sheets, strips, plates, and aluminium extrusions.
The company reported a profit after tax (PAT) of Rs.17.8 million on net sales of Rs.3219 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs. 7.7 million on net sales of Rs. 1903 million for 2008-09.
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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
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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
Vasudevan R
Head - CRISIL Ratings
Tel: +91-44-6656 3106
Email: rvasudevan@crisil.com
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Email: CRISILratingdesk@crisil.com
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