Hindprakash Tradelink Pvt. Ltd.

Rating Rationale
Brickwork Ratings upgrades the ratings to ‘BWR BBB-’ & ‘BWR A3’ for the Bank
Loan Facilities aggregating to ₹ 65.00 Cr for Hindprakash Tradelink Private
Limited.
Brickwork Ratings (BWR) has revised the following Ratings1 for the bank loan facilities of
Hindprakash Tradelink Private Limited (“HTPL” or “the Company”).
Facility
Previous
Limits
(₹ Cr)
Present
Limits
(₹ Cr)
Tenure
Fund Based
Cash Credit
15.00
45.00
Long Term
Rating
BWR BBB(Pronounced
BWR Triple B
Minus)
Rating History
BWR BB
(Pronounced
BWR Double B)
Outlook : Stable Outlook : Stable
Non Fund Based
ILC/FLC/LC/Buyer
Credit
Total Limits
20.00
20.00
BWR A3
(Pronounced
BWR A Three)
BWR A4
(Pronounced
BWR A Four)
(INR Sixty Five Crores only)
Short Term
65.00
BWR has principally relied upon the audited financials of HTPL upto FY 14 and projections,
publicly available information and information/clarifications provided by the Company.
The rating upgrade factors positively the improvement in the financial performance during
FY14, satisfactory provisional sales as on Nov 2014 and healthy order book position. The rating
continues to draw strength from the long established presence of the group in trading
operations in the dyestuff industry, strong promoters profile and strong association with
diversified and established customers, improving trend reflected in the capital structure and
profitability of the Company.
The ratings are however constrained by low profitability of the Company due to trading nature
and high working capital intensity of operations, high level of competition in the industry and
susceptibility of HTPL’s profits to volatile commodity price fluctuations.
Company Profile
Hindprakash Tradelink Private Limited (HTPL), incorporated in January 2003 is promoted by
Mr. Vipin Prakash Mangal, Mr. Sanjay Mangal and Mr. Santosh Nambiar. HTPL is mainly
engaged in trading of dyes, dyes intermediates, chemicals and grey fabric. HTPL is the associate
Company within the Group Hindprakash. The corporate office of the Company is located at
Vatva, Ahmedabad.
1
Please refer to www.brickworkratings.com for definition of the Ratings
www.brickworkratings.com
1
7 Jan 2015
Management
HTPL, being part of Hindprakash group is currently promoted by Mr. Sanjay Mangal and Mr.
Santosh Nambair. The promoters are having long established presence in the dyestuff industry
and hold experience of more than two decades in the industry.
Financial performance
During the year FY14, HTPL recorded significant growth in operating income by 86% to Rs.
313.36crs as compared to Rs. 168.75crs in FY13 driven by improved demand in the market. The
operating margins improved to 2.84% in FY14 as against 2.61% in FY13 on account of better
price realizations while the PAT margin was at 0.91% as compared to 0.83% in FY13.
Rating Outlook
The outlook of the Company would remain stable. Going forward, the ability of the Company to
sustain improvement in sales and profitability, further enhancing the capital structure and
sound working capital management will be the key rating sensitivities.
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.
www.brickworkratings.com
2
7 Jan 2015

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