Rating Rationale
April 01, 2025 | Mumbai
Globetrotters Educational Innoventions Private Limited
'Crisil BBB+/Stable' assigned to Bank Debt
 
Rating Action
Total Bank Loan Facilities RatedRs.50 Crore
Long Term RatingCrisil BBB+/Stable (Assigned)
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 assigned its ‘Crisil BBB+/Stable’ rating to the long-term bank facilities of Globetrotters Educational Innoventions Pvt Ltd (GEIPL).
 

The ratings reflect GEIPL's longstanding regional presence, experienced management and healthy financial risk profile. These strengths are partially offset by vulnerability to stringent regulations, exposure to intense competition and high student concentration in one school.

Analytical approach

Crisil Ratings has evaluated the standalone business and financial risk profiles of GEIPL.

Key rating drivers and detailed description

Strengths:

  • Longstanding regional presence and experienced management: The school has established its presence in Jaipur for more than 15 years, which has helped in improving occupancy over the years. This is reflected in increase in revenue to Rs 116.12 crore in fiscal 2024 from Rs 72.47 crore in fiscal 2022, and it is expected to be Rs 145-150 crore in fiscal 2025. The founder and secretary, Mrs Jayshree Periwal, has extensive experience in the education industry for more than two decades. The company operates seven schools under its umbrella. The occupancy level is also improving on-year. It has more than 4,000 students with a combined healthy teacher-to-student ratio of 1:8 in fiscal 2025. The school provides education under the International General Certificate of Secondary Education (IGCSE) board.

 

  • Healthy financial risk profile: GEIPL’s capital structure has been healthy because of lower reliance on external funds yielding gearing of 0.67 time and low total outside liabilities to adjusted networth (TOLANW) ratio of 1.06 times as on March 31, 2024. GEIPL’s debt protection metrics have also been strong due to low leverage and robust profitability. The interest coverage and net cash accrual to total debt (NCATD) ratios were 5.60 times and 0.36 time, respectively, for fiscal 2024. The debt protection metrics are expected to remain at a similar level over the medium term. Timely capital expenditure (capex) will not significantly impact the financial risk profile due to healthy networth base and profitability.

 

Weaknesses:

  • Vulnerability to stringent regulations: Establishment and operation of educational institutions are regulated by various governmental and quasi-governmental agencies, such as the University Grants Commission (UGC), Medical Council of India (MCI), All India Council for Technical Education (AICTE), Central Board for Secondary Education (CBSE), universities and state governments. Each body has detailed procedures for granting permission to set up institutions and approvals need to be renewed every three or five years. Any non-compliance will result in cancellation of affiliation or license, leading to loss of reputation for the college and revenue for the trust.

 

  • Exposure to intense competition: GEIPL operates International Board (IB) and pre-primary schools in Jaipur, where it faces competition from other private schools in the region. Any increase in competition or slowdown in student intake because of shift in student preference to other competing institutes can impact the business risk profile.

 

  • High student concentration in one school: The company has a total of 7 schools under the umbrella. 62% of students are in single school JPIS and around 88% of the revenue comes from the same school which leads to high centration risk. Any significant impact on JPIS Impacting brand reputation of the company will remain a key monitorable over the medium term.

Liquidity: Adequate

Bank limit utilisation was moderate at 83.88% on average for the 12 months ending January 31, 2025. Cash accrual is expected to be over Rs 32 crore which will be sufficient against term debt obligation of Rs 9-13 crore over the medium term, and the surplus will cushion the liquidity of the company. The current ratio was low at 0.57 time as on March 31, 2024. The promoters are likely to extend support in the form of equity and unsecured loans to meet the working capital requirement and debt obligation. Cash and bank balance was low at Rs 1.07 crore as on March 31, 2024.
 

Liquid investments were Rs 11.71 crore in shares, debentures and mutual funds as on March 31, 2024. Low gearing and moderate networth support its financial flexibility and provide the financial cushion required in case of any adverse conditions or downturn in the business.

Outlook: Stable

Crisil Ratings believes GEIPL will continue to benefit, over the medium term, from its established position and the management’s extensive experience in the sector. Crisil Ratings also believes that its financial risk profile would be stable over the medium term, backed by healthy cash accrual and prudent financing of capex. 

Rating sensitivity factors

Upward factors:

  • Significant and substantial increase in accrual to Rs 60 crore, strengthening revenue visibility
  • Sustenance of the financial risk profile with no major dependence on debt.
     

Downward factors:

  • Decline in occupancy levels impacting fee collection or profitability declining to below 25% leading to lower-than-expected net cash accrual* or any unanticipated capex
  • Any large, debt-funded capex, impacting the financial risk profile

About the company

Incorporated in 2007, GEIPL operates International Board (IB) schools in Jaipur, Rajasthan. It has a day boarding school along with hostel facilities called Jayshree Periwal International School (JPIS) at Mahapura, Jaipur, and six pre-primary schools. The pre-primary schools include Jayshree Periwal Pre-Primary School, Naru Path; Jayshree Periwal Pre-Primary School, Malviya Nagar; Jayshree Periwal International Pre School, C-Scheme; Jayshree Periwal International Pre School, Nirman Nagar; Jayshree Periwal International Pre School, Bani Park; and Jayshree Periwal International Pre School, C-Scheme – II.
 

GEIPL is owned and managed by Mr Rupendra Periwal, Mrs Jayshree Periwal and Mr Ayush Periwal.

Key financial indicators

As on / for the period ended March 31

Unit

2024

2023

Operating income

Rs crore

116.12

99.37

Reported profit after tax (PAT)

Rs crore

10.96

9.31

PAT margin

%

9.20

8.72

Adjusted debt/adjusted networth

Times

0.67

0.82

Interest coverage

Times

5.60

5.85

Status of non cooperation with previous CRA
GEIPL has not cooperated with Credit Analysis & Research Ltd. (CARE) which has classified it as non-cooperative vide release dated March 20, 2025. The reason provided by CARE is non-furnishing of information for monitoring of ratings.

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
Crisil Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

Crisil Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the Crisil Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN Name Of Instrument Date Of Allotment Coupon Rate (%) Maturity Date Issue Size (Rs.Crore) Complexity Levels Rating Outstanding with Outlook
NA Overdraft Facility NA NA NA 20.00 NA Crisil BBB+/Stable
NA Term Loan NA NA 31-Mar-27 17.13 NA Crisil BBB+/Stable
NA Term Loan NA NA 31-Oct-26 7.23 NA Crisil BBB+/Stable
NA Term Loan NA NA 31-Mar-30 3.03 NA Crisil BBB+/Stable
NA Term Loan NA NA 30-Apr-27 2.61 NA Crisil BBB+/Stable
Annexure - Rating History for last 3 Years
  Current 2025 (History) 2024  2023  2022  Start of 2022
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 50.0 Crisil BBB+/Stable   --   --   --   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Overdraft Facility 10 HDFC Bank Limited Crisil BBB+/Stable
Overdraft Facility 10 ICICI Bank Limited Crisil BBB+/Stable
Term Loan 17.13 HDFC Bank Limited Crisil BBB+/Stable
Term Loan 2.61 HDFC Bank Limited Crisil BBB+/Stable
Term Loan 7.23 HDFC Bank Limited Crisil BBB+/Stable
Term Loan 3.03 HDFC Bank Limited Crisil BBB+/Stable
Criteria Details
Links to related criteria
Basics of Ratings (including default recognition, assessing information adequacy)
Criteria for manufacturing, trading and corporate services sector (including approach for financial ratios)

Media Relations
Analytical Contacts
Customer Service Helpdesk

Ramkumar Uppara
Media Relations
Crisil Limited
M: +91 98201 77907
B: +91 22 6137 3000
ramkumar.uppara@crisil.com

Sanjay Lawrence
Media Relations
Crisil Limited
M: +91 89833 21061
B: +91 22 6137 3000
sanjay.lawrence@crisil.com


Nitin Kansal
Director
Crisil Ratings Limited
B:+91 124 672 2000
nitin.kansal@crisil.com

Nilesh Agarwal
Associate Director
Crisil Ratings Limited
B:+91 79 4024 4500
nilesh.agarwal1@crisil.com

Jenil Patel
Management Trainee
Crisil Ratings Limited
B:+91 79 4024 4500
Jenil.Patel@crisil.com

Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 3850

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com



 

Note for Media:
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 Ratings. However, Crisil Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.


About Crisil Ratings Limited (A subsidiary of Crisil Limited, an S&P Global Company)

Crisil Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).

Crisil Ratings Limited ('Crisil Ratings') is a wholly-owned subsidiary of Crisil Limited ('Crisil'). Crisil Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").

For more information, visit www.crisilratings.com 

 



About Crisil Limited

Crisil is a leading, agile and innovative global analytics company driven by its mission of making markets function better. 

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK

CRISIL PRIVACY NOTICE
 
Crisil respects your privacy. We may use your contact information, such as your name, address and email id to fulfil your request and service your account and to provide you with additional information from Crisil. For further information on Crisil's privacy policy please visit www.crisil.com.



DISCLAIMER

This disclaimer is part of and applies to each credit rating report and/or credit rating rationale ('report') provided by Crisil Ratings Limited ('Crisil Ratings'). For the avoidance of doubt, the term 'report' includes the information, ratings and other content forming part of the report. The report is intended for use only within the jurisdiction of India. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as Crisil Ratings provision or intention to provide any services in jurisdictions where Crisil Ratings does not have the necessary licenses and/or registration to carry out its business activities. Access or use of this report does not create a client relationship between Crisil Ratings and the user.

The report is a statement of opinion as on the date it is expressed, and it is not intended to and does not constitute investment advice within meaning of any laws or regulations (including US laws and regulations). The report is not an offer to sell or an offer to purchase or subscribe to any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in any way.

Crisil Ratings and its associates do not act as a fiduciary. The report is based on the information believed to be reliable as of the date it is published, Crisil Ratings does not perform an audit or undertake due diligence or independent verification of any information it receives and/or relies on for preparation of the report. THE REPORT IS PROVIDED ON “AS IS” BASIS. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS, CRISIL RATINGS DISCLAIMS WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR OTHER WARRANTIES OR CONDITIONS, INCLUDING WARRANTIES OF MERCHANTABILITY, ACCURACY, COMPLETENESS, ERROR-FREE, NON-INFRINGEMENT, NON-INTERRUPTION, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE OR INTENDED USAGE. In no event shall Crisil Ratings, its associates, third-party providers, as well as their directors, officers, shareholders, employees or agents be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

The report is confidential information of Crisil Ratings and Crisil Ratings reserves all rights, titles and interest in the rating report. The report shall not be altered, disseminated, distributed, redistributed, licensed, sub-licensed, sold, assigned or published any content thereof or offer access to any third party without prior written consent of Crisil Ratings.

Crisil Ratings or its associates may have other commercial transactions with the entity to which the report pertains or its associates. Ratings are subject to revision or withdrawal at any time by Crisil Ratings. Crisil Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors.

Crisil Ratings has in place a ratings code of conduct and policies for managing conflict of interest. For more detail, please refer to: https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html. Public ratings and analysis by Crisil Ratings, as are required to be disclosed under the Securities and Exchange Board of India regulations (and other applicable regulations, if any), are made available on its websites, www.crisilratings.com and https://www.ratingsanalytica.com (free of charge). Crisil Ratings shall not have the obligation to update the information in the Crisil Ratings report following its publication although Crisil Ratings may disseminate its opinion and/or analysis. Reports with more detail and additional information may be available for subscription at a fee.  Rating criteria by Crisil Ratings are available on the Crisil Ratings website, www.crisilratings.com. For the latest rating information on any company rated by Crisil Ratings, you may contact the Crisil Ratings desk at crisilratingdesk@crisil.com, or at (0091) 1800 267 3850.

Crisil Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on Crisil Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisilratings.com/en/home/our-business/ratings/credit-ratings-scale.html