Efftronics Systems gets BB+/P4+ from CRISIL

(ADPnews) - Dec 31, 2010 - CRISIL yesterday said it had rated the bank facilities of Efftronics Systems Pvt Ltd at BB+/stable/P4+.

The agency issued the following press release:

Rs.110.00 Million Cash Credit BB+/Stable (Assigned)
Rs.10.00 Million Term Loan BB+/Stable (Assigned)
Rs.65.00 Million Bank Guarantee P4+ (Assigned)

CRISIL has assigned its ‘BB+/Stable/P4+’ ratings to the bank facilities of Efftronics Systems Pvt Ltd (ESPL). The ratings reflect ESPL’s working-capital-intensive operations, and customer concentration in its revenue profile. These weaknesses are partially offset by ESPL’s above-average financial risk profile, marked by comfortable gearing, and healthy debt protection metrics and cash accruals.

Outlook: Stable
CRISIL believes that ESPL will maintain its market position on the back of healthy demand from the Indian Railways and its increasing product profile. The outlook may be revised to ‘Positive’ in case of a sustainable growth in profitability, driven by new high-end products. Conversely, the outlook may be revised to ‘Negative’ on account of decline in the operating margin, driven by an increase in raw material prices or any debt-funded capital expenditure programme.

About the Company
ESPL was incorporated in 1987 by Mr. Rama Krishna, Mr. Murali Krishna and Mr. Subba Rao. The company manufactures light-emitting diode (LED)-based electronic moving displays, LED-based signal lamps and microprocessor-based data loggers for application in locomotives, coaches and railway stations.

ESPL reported a profit after tax (PAT) of Rs.46.5 million on net sales of Rs.363.3 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs.22.4 million on net sales of Rs.310.4 million for 2008-09.

(INR 100 = USD 2.231/EUR 1.671)

Rating agency website: www.crisil.com

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