Brickwork Ratings has upgraded the rating of KSH Distriparks Pvt. Ltd.

Rating Rationale
Brickwork Ratings has upgraded the rating of KSH Distriparks Pvt. Ltd.’s
Non-Convertible Debentures issue of ₹ 32 Cr to ‘BWR BB’ from BWR BB-.
On a review, Brickwork Ratings has upgraded the Rating1 of KSH Distriparks Pvt. Ltd.’s (KSH
or the ‘Company’) Non-Convertible Debentures (NCD) issue of ₹ 32 Cr to ‘BWR BB’ from BWR
BB- (rated earlier on April’2013). The outlook continues to be stable.
The rating upgrade factors the improved net worth and gearing of the Company on completion
of the merger with Pasha Ventures Pvt. Ltd. (PVPL) The rating continues to derive strength from
long standing experience of promoters, presence in the multi modal logistics services, and
diversified & established customer base. The rating is however constrained by small scale of
operations, low debt service metrics, and highly fragmented nature of the logistic industry.
BWR has relied on the financial results, projected financials, annual report and the information
& clarification provided by KSH Distriparks Pvt. Ltd.
Instruments
Amount
Rating
(₹ Cr)
NCD
32
Rating History
Rating As on
BWR BB
(BWR Double B)
Outlook - Stable
BWR BB(March 21, 2013)
Background
KSH Distriparks, promoted by Mr. Kushal S Hedge in 2006 in Talegoan, Pune, is an integrated
Logistics Company. It provides Inland Container Depot (ICD) including Bonded Warehouse,
infrastructure, transportation and national Third Party Logistics (3PL) services to various
industrial clients in & around Pune. PCRD Services Pvt Ltd holds 49.87 % stake in the company
KSH Promoters hold 34.59% and the Mehta family holds 12.94 % in the Company.
On 10 May 2013, Pasha Ventures Pvt Ltd (PVPL), a group company of PCRD, was merged with
KSH Distriparks Pvt Ltd for a purchase consideration of ₹ 113 Cr. PVPL was held by PCRD (74%)
and the Mehta Family (26%).
1
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1
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Operations
The Company’s second warehouse of 1 lakh sq. ft. was completed in October 2013. The
warehouse was leased up to March 31, 2014 and the Company is in the process of signing long
term agreements with customers. It is also in the process of acquiring a 38 acre plot for its third
warehouse.
Management
Mr. Kushal Subbaya Hegde, Mr. Rajesh Kushal Hegde, Mr. Rohit Kushal Hedge, Mr. Peter
Allen, Mr. Akash Mehta, and Mr. Beng Jin Lim are the Directors of the Company. Mr.
Chandraveer Singh is the CFO of the Company.
Financial Performance
The Company has clocked Revenue of Rs29.48 Cr in 10MFY14 compared to Rs23.06 Cr in FY13.
It registered its first year of profits in 10MFY14 after incurring losses in the last 3 years.
Operating profit and the Net profit have improved during 10MFY14 to Rs1.22 Cr and Rs3.36 Cr
respectively from EBITDA loss of Rs.3.97 Cr and net loss of 8.74 Cr in FY13. TNW substantially
improved from Rs44.67 Cr in FY13 to Rs161.32 Cr in 10M FY14 due to merger with PVPL.
Outlook
The rating draws strength from promoters’ experience, presence in the vital multi modal
logistics services industry and integrated operations. Smooth implementation of the ongoing
project and achievement of revenue and profitability as envisaged, will be key sensitivity factors.
Analyst Contact
Relationship Contact
[email protected]
[email protected]
Phone
Media Contact
1-860-425-2742
[email protected]
Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources,
which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or
completeness of the information obtained. And hence, the information in this report is presented “as is” without any express or implied warranty
of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR
should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses
incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any
reasons.
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4 Apr 2014

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