Rating Rationale
December 30, 2022 | Mumbai
Vijaya Diagnostic Centre Limited
Issuer not cooperating, based on best-available information; Ratings continues to be ‘CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.40 Crore
Long Term RatingCRISIL B+ /Stable (ISSUER NOT COOPERATING*)
Short Term RatingCRISIL A4 (ISSUER NOT COOPERATING*)
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
*Issuer did not cooperate; based on best-available information
 
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Vijaya Diagnostic Centre Limited (VDCPL) for obtaining information through letters and emails dated September 16, 2022 and November 30, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative.

 

‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of VDCPL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VDCPL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of VDCPL continues to be ‘CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating’.

 

For arriving at its ratings, CRISIL Ratings has combined the business and financial risk profiles of VDCPL, VDC Diagnostics (Karnataka) LLP, Vijaya Diagnostic Pvt Ltd (formerly known as Aishwarya Diagnostic Services Pvt Ltd), Bhadrakali Medical Centre Pvt Ltd, Vijaya Diagnostic Center (Mancherial) Pvt Ltd, and Medinova Diagnostic Services Ltd. This is because all these entities, collectively referred to as the Vijaya group, are in the same line of business, and have a common management team and fungible cash flows.

About the Company

VDCPL was originally set up by Mr. Surendranath Reddy in 1981 as a proprietorship firm, which was reconstituted as a private limited company in 2002. The Vijaya group provides diagnostic services such as urine, blood, and stool tests, and other complex diagnoses such as magnetic resonance imaging, computerised tomography scan, immunology, nuclear medicine, high-end positron emission tomography scan, and gamma camera.

Key Financial Indicators

Particulars (Rs in Lacs)

Q3-FY 2023

FY 2022

Revenue

12405.36

47520.05

Profit After Tax (PAT)

2346.72

11066.76

Operating Profit Margin (OPM)

42%

46%

Net Profit Margin (NPM)

19%

23%

Source: BSE

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. Cr)

Complexity Levels

Rating Assigned with Outlook

NA

Cash Credit

NA

NA

NA

2

NA

CRISIL B+/Stable/Issuer Not Cooperating

NA

Long Term Loan

NA

NA

Not Available

17

NA

CRISIL B+/Stable/Issuer Not Cooperating

NA

Long Term Loan

NA

NA

Not Available

9

NA

CRISIL B+/Stable/Issuer Not Cooperating

NA

Overdraft Facility

NA

NA

NA

1

NA

CRISIL A4/Issuer Not Cooperating

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

11

NA

CRISIL B+/Stable/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT/ST 40.0 CRISIL A4 / CRISIL B+ /Stable(Issuer Not Cooperating)*   -- 30-10-21 CRISIL A4 / CRISIL B+ /Stable(Issuer Not Cooperating)* 27-07-20 CRISIL A4 / CRISIL B+ /Stable(Issuer Not Cooperating)* 26-04-19 CRISIL BB+ /Stable / CRISIL A4+ (Issuer Not Cooperating)* CRISIL A3+ / CRISIL BBB /Stable(Issuer Not Cooperating)*
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
 
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Cash Credit 2 CRISIL B+ /Stable(Issuer Not Cooperating)*
Long Term Loan 17 CRISIL B+ /Stable(Issuer Not Cooperating)*
Long Term Loan 9 CRISIL B+ /Stable(Issuer Not Cooperating)*
Overdraft Facility 1 CRISIL A4 (Issuer Not Cooperating)*
Proposed Long Term Bank Loan Facility 11 CRISIL B+ /Stable(Issuer Not Cooperating)*
* - Issuer did not cooperate; based on best-available information
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk
CRISILs Criteria for Consolidation

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