|
CRISIL has assigned its ‘BBB-/Stable/P3’ ratings to the bank facilities of Shri Siddhi Kumar Infrastructure Pvt Ltd (SSK), which is part of the Siddhi Kumar group.
The ratings reflect the Siddhi Kumar group’s promoters’ experience in the civil construction industry, and its above-average financial risk profile, marked by comfortable debt protection metrics. These rating strengths are partially offset by the group’s modest scale of operations, and geographically concentrated revenue profile.
For arriving at its ratings, CRISIL has combined the business and financial risk profiles of SSK and S Kumar Constructions (SKC). This is because the two entities, together referred to as the Siddhi Kumar group, are under a common management, in similar lines of business, and have considerable financial interlinkages.
Outlook: Stable
CRISIL believes that the Siddhi Kumar group will continue to benefit from its promoters’ experience in the civil construction industry. The outlook may be revised to ‘Positive’ if the group’s revenues increase and profitability improves significantly and on a sustained basis, and it maintains its debt protection indicators. Conversely, the outlook may be revised to ‘Negative’ if the group’s financial risk profile deteriorates, driven most likely by an increase in gearing, large, debt-funded capital expenditure, or delay in implementation of its ongoing and future projects.
About the Group
SSK was incorporated in 2000 and promoted by Mr. Ashok Jaswani. The company undertakes civil construction projects such as earthwork for roads and bridges, earthmoving, and demolition services. Mr. Ashok Jaswani also runs a sole proprietorship concern, SKC, which is also into civil construction. SSK has a sizeable order book, which provides good revenue visibility for the next two years. SSK and SKC are jointly managed by Mr. Ashok Jaswani and his sons Mr. Dhaval Jaswani and Mr. Apoorva Jaswani.
SSK reported, on provisional basis, a profit after tax (PAT) of Rs.40.9 million on net sales of Rs.1.1 billion for 2009-10 (refers to financial year, April 1 to March 31); it reported a PAT of Rs.14.4 million on net sales of Rs.506.0 million for 2008-09.
|
 |
|
Media Contacts
|
Analytical Contacts
|
CRISIL Rating Desk
|
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
|
Gurpreet S Chhatwal
Director - CRISIL Ratings
Tel: +91-11-4250 5100
Email: gchhatwal@crisil.com
Vinayak Nayak
Senior Manager - CRISIL Ratings
Tel: +91-22-4097 8218
Email: vnayak@crisil.com
| Tel: +91-22-3342 3047 / 3342 3064
Email: CRISILratingdesk@crisil.com
|
|
Note:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL. However, CRISIL alone has the sole right of distribution of its rationales for consideration or otherwise through any media including websites, portals etc.
|
CRISIL Complexity Levels are assigned to various types of financial instruments. The CRISIL Complexity Levels are available on www.crisil.com/complexity-levels. Investors are advised to refer to the CRISIL Complexity Levels for instruments that they propose to invest in. Investors can also call the CRISIL Helpline at +91 22 3342 3047 / + 91 22 33423064 with queries on specific instruments.
|
|
CRISIL is India's leading Ratings, Research, Risk and Policy Advisory company. CRISIL leverages its core strengths of credibility and analytical rigour to deliver opinions and solutions, that help clients mitigate and manage their business and financial risks, make markets function better, and help shape public policy. For more information, visit www.crisil.com.
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.
|
|
