APR Constructions: India Ratings assigns APR Constructions ‘IND BB+’, outlook stable
The ratings reflect APR Constructions modest scale of operations. The company’s revenue declined 27.6% on-year to Rs 174 crore in 2019-20 due to the slow execution of orders and delayed approvals from the government departments due to COVID-19 led operational disruption, the ratings agency said.
The company achieved revenue of Rs 135.5 crore in the first nine months of 2020-21. Its order book stood at Rs 610 crore as on December end, which provides moderate revenue visibility for the next two-to-three years.
The ratings factor in APR Constructions’ highly-concentrated order book, as the top five orders contributed to around 78% of the outstanding orders at end-9MFY21.
The ratings are also factor in the company’s modest EBITDA margin, which contracted to 7.8% in FY20 (FY19: 8.45%) due to the increased execution of lower-margin material portion of the contract; margins are lower for
companies when they bill material portion than the labour portion of the contract.
APRCL reported nil utilisation of its fund-based limits of Rs 17.5 crore over the last 12-months ended January 2021. The company does not have any term loans outstanding and has not availed the Reserve Bank of India-prescribed moratorium.
