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CRISIL has assigned its ‘BBB/Stable/P3+’ ratings to Transstroy India Ltd’s (TIL’s) bank facilities. The ratings reflect TIL’s sizeable order book and healthy financial risk profile, marked by adequate net worth and comfortable debt protection metrics. These rating strengths are partially offset by TIL’s exposure to sectoral and geographical concentration in revenue profile, and large working capital requirements.
Outlook: Stable
CRISIL believes that TIL will continue to benefit from its buoyant order book and strong growth in operating income, over the medium term. The company’s financial risk profile is expected to remain sound on the back of healthy cash accruals and strong capital structure. The outlook may be revised to ‘Positive’ in case of continued improvement in TIL’s revenues and profitability, and increased diversification of its project profile. Conversely, the outlook may be revised to ‘Negative’ if there are time and cost overruns in TIL’s ongoing and future projects, leading to decline in its profitability, or increase in its investments in its special purpose vehicle, leading to weakening of its financial risk profile.
About the Company
TIL was established in 2001 by Mrs. Leela Kumari. The day-to-day activities of the company are managed by Mr. Sridhar Cherukuri. The company mainly undertakes roads and irrigation projects in Andhra Pradesh and Madhya Pradesh.
TIL reported a profit after tax (PAT) of Rs.899 million on net sales of Rs.10204 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs.546 million on net sales of Rs.5790 million for 2008-09.
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Media Contacts
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Analytical Contact
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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
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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Note:
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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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