India Ratings affirms J Kumar Infraprojects at 'IND A+'/Stable; Off RWN

India Ratings and Research has affirmed J.Kumar Infraprojects (JKIL)'s long-term issuer rating at 'IND A+', while resolving the rating watch negative (RWN), with 'stable' outlook.

The credit rating agency has reaffirmed its rating on the term loans (worth Rs 63 crore) and fund-based limit of the company (worth Rs 610.2 crore) at 'IND A+/Stable' while the rating of the non-fund-based limit (worth Rs 2,898.8 crore) and the commercial paper (worth Rs 250 crore) has been reaffirmed at 'IND A1'.

The rating agency said that any reduction in the visibility of revenue due to cancellation/stalling of projects and/or any deterioration in the financial profile of the company, resulting from an elongation of the working capital cycle or net leverage exceeding 1.5x on a sustained basis, would be negative for the ratings.

However, a substantial improvement in the business profile as a result of diversification and/or reduction in project and segmental concentration would result in a positive rating action, it added.

JKIL is engaged in the construction of elevated and underground metro projects, roads and bridges and civil construction activities.

The construction company's standalone net profit rose 58% to Rs 55.90 crore on 22.8% increase in net sales to Rs 631.98 crore in Q2 September 2019 compared with Q2 September 2018.

Powered by Capital Market - Live News