| B&B Triplewall Containers Limited | ||||
| Rating reaffirmed at 'Crisil BBB+ / Stable' | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its 'Crisil BBB+/Stable' rating on the long-term bank facilities of B&B Triplewall Containers Limited (BBTCL).
The rating continues to reflect the extensive industry experience of the promoters in the industrial paper packaging industry, established client relationships and comfortable financial risk profile. These strengths are partially offset by exposure to intense competition and customer concentration risk and susceptibility to cyclicality in the end-user industries. |
Analytical Approach Unsecured loans of Rs 27.25 crore as on March 31, 2025, has been treated as neither debt nor equity because the loan is expected to remain in the business over the medium term.
Crisil Ratings has evaluated the standalone business and financial risk profiles of BBTCL. |
Key Rating Drivers - Strengths Extensive entrepreneurial experience of promoters and established client relationships The promoters’ experience of over two decades, strong understanding of market dynamics and healthy relationships with suppliers and customers should continue to support the business. The end user profile is diversified across industries and comprises fast-moving consumer goods (FMCG), processed food and beverages and online retail segments among others. The company has recently started operations of its kraft paper manufacturing unit. The new unit being a backward integration to the existing unit is expected to improve efficiency and enhance operating margins over the medium term. However, margins were impacted in fiscal 2025 on account of the stabilization issues in this kraft paper unit; it is expected to revive in the current fiscal and will remain a key monitorable.
Comfortable financial risk profile: Gearing and total outside liabilities to tangible networth ratios were at 1.62 times and 1.87 times, respectively, as on March 31, 2025. Debt protection metrics were comfortable with interest coverage and net cash accrual to adjusted debt (NCAAD) ratios at 2.37 times and over 0.12 time, respectively, for fiscal 2025. |
Key Rating Drivers - Weaknesses Exposure to Intense competition and customer concentration risk: The industrial paper packaging industry in India is highly fragmented and the intense competition may continue to constrain scalability, pricing power and profitability. Furthermore, the company’s top five customers contribute more than 45% to its revenues, with a single customer contributing 16% in fiscal 2025. Susceptibility to cyclicality in the end-user industries: Cyclical downturns or adverse demand-supply dynamics may result in lower realizations. Any adverse impact in the end-user industries may affect the revenue and profitability of BBTCL. |
Liquidity Adequate Bank limit utilization averaged 79% for the 12 months through Aug 2025. Cash accruals are expected at Rs 35-55 crore against term debt obligation of Rs 15-36 crore over the medium term and will cushion liquidity. The promoters are likely to extend support in the form of unsecured loans to meet working capital requirements and debt obligation. Unsecured loans stood at Rs 27.25 crore as on March 31, 2025, and has been treated as neither debt nor equity as it is expected to remain in the business over the medium term. |
Outlook Stable Crisil Ratings believes BBTCL will continue to benefit from its promoters’ extensive entrepreneurial experience and established customer relationships. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company BBTCL was incorporated in August 2011 and commenced commercial operations in June 2012. The company, based in Bengaluru, manufactures corrugated boxes used for packaging products in FMCG and electronic-commerce industries |
Key Financial Indicators
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||
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Criteria Details
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