By Shivani Suvarna

India Ratings and Research (Ind-Ra) has taken the following rating actions on Shrinath Rotopack Private Limited (SRIL): 

Instrument Type

Date of Issuance

Coupon Rate

Maturity Date

Size of Issue (million)

Rating/Outlook

Rating Action

Long-Term Issuer Rating

 

 

 

 

IND A-/Stable

Affirmed

Fund-based limits

 

 

 

INR710

IND A-/Stable/IND A2+

Assigned

Term loans

 

 

FY24-FY25

INR345.3

IND A-/Stable

Assigned

Fund-based limits

 

 

 

INR1,100

IND A-/Stable/IND A2+

Affirmed

Non-fund-based limits

-

-

-

INR63

IND A2+

Affirmed

Term loans

 

 

FY24-FY25

INR762.2

IND A-/Stable

Affirmed

KEY RATING DRIVERS

For the detailed rating rationale, please click here.


RATING SENSITIVITIES

Positive: Substantial improvement in the scale of operations and liquidity along with the net leverage falling below 2.5x, on a sustained basis, could lead to a positive rating action.

Negative: Developments that could, individually or collectively, lead to a negative rating action are:

- net leverage exceeding 3.5x on a sustained basis

- substantial deterioration in the liquidity position

 


COMPANY PROFILE


SRPL is a manufacturer of flexible laminated packaging materials and is promoted by the Rathi family. It operates through its two units, one each in Mankhal and Burgul in Hyderabad.

 

FINANCIAL SUMMARY

Particulars

FY21

FY20

Revenue (INR million)

7,331.20

6,899.00

EBITDA (INR million)

878.6

720.2

EBITDA margin (%)

11.98

10.4

Interest coverage (x)

4.2

3.1

Net leverage (x)

3

3.13

Source: SRPL, Ind-Ra


RATING HISTORY

Instrument Type

Current Rating/Outlook

Historical Rating/Outlook

Rating Type

Rated Limits (million)

Rating

11 November 2021

5 August 2021

16 July 2021

 

10 July 2020

30 September 2019

26 October 2018

Issuer rating

Long-term

-

IND A-/Stable

IND A-/Stable

IND BBB+/Positive

IND BB(ISSUER NOT COOPERATING)

IND BB(ISSUER NOT COOPERATING)

IND BBB+(ISSUER NOT COOPERATING)

IND BBB+(ISSUER NOT COOPERATING)

Fund-based working capital limits

Long-term/short-term

INR1,810

IND A-/Stable /IND A2+

IND A-/Stable /IND A2+

IND BBB+/Positive/IND A2+

IND BB(ISSUER NOT COOPERATING)/ IND A4+(ISSUER NOT COOPERATING)

IND BB(ISSUER NOT COOPERATING)/ IND A4+(ISSUER NOT COOPERATING)

IND BBB+(ISSUER NOT COOPERATING)/ IND A2+(ISSUER NOT COOPERATING)

IND BBB+(ISSUER NOT COOPERATING)/ IND A2+(ISSUER NOT COOPERATING)

Non-fund-based working capital limits

Short-term

INR63

IND A2+

IND A2+

IND A2+

IND A4+(ISSUER NOT COOPERATING)

IND A4+(ISSUER NOT COOPERATING)

IND A2+(ISSUER NOT COOPERATING)

IND A2+(ISSUER NOT COOPERATING)

Term loan

Long term

INR1,107.5

IND A-/Stable

IND A-/Stable

IND BBB+/Positive

IND BB(ISSUER NOT COOPERATING)

IND BB(ISSUER NOT COOPERATING)

IND BBB+(ISSUER NOT COOPERATING)

IND BBB+(ISSUER NOT COOPERATING)


COMPLEXITY LEVEL OF INSTRUMENTS

Instrument Type

Complexity

Fund-based limits

Low

Non-fund-based limits

Low

Term loan

Low

 For details on the complexity level of the instruments, please visit https://www.indiaratings.co.in/complexity-indicators.

 

SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

ABOUT INDIA RATINGS AND RESEARCH

About India Ratings and Research: India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies and project finance companies. 

Headquartered in Mumbai, Ind-Ra has seven branch offices located in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Pune. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank. 

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For more information, visit www.indiaratings.co.in.

DISCLAIMER

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Applicable Criteria

Analyst Names

  • Primary Analyst

    Shivani Suvarna

    Analyst
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th Floor, West Wing, Bandra Kurla Complex, Bandra East,Mumbai - 400051
    +91 22 40356172

    Media Relation

    Ankur Dahiya

    Manager – Corporate Communication
    +91 22 40356121