You are here: Home » Companies » News
Business Standard

India Ratings upgrades Capacite Infra to 'IND BBB'; outlook 'stable'

Capacite Infraprojects provides engineering, procurement and construction/turnkey solutions for housing, high rises, super high rises, speciality buildings and urban infrastructure

Topics
India Ratings | Credit rating agencies

BS Web Team  |  New Delhi 

Moody's, rating, credit

Capacite Infraprojects on Monday said that and Research (Ind-Ra) has upgraded the company's long-term issuer rating to 'IND BBB' from 'IND D'.

The outlook is 'stable', the credit ratings agency said.

Ind-Ra said that the upgrade reflects CIL's timely debt servicing on the term loans since 23 August 2021, as per the information shared by the company along with the confirmation from the lenders in their respective communication with the agency.

The rating upgrade also factors in the improvements in the internal controls and governance measures established by Capacite Infra by way of configuring the auto-debit facility for the term loans to a single cash credit account.

The company has also given an undertaking to the agency to maintain sufficient balance in the respective cash credit account to honour the next scheduled repayment all the time.

Also, there is a second layer of protection in the form of a Rs 7.35 crore debt service reserve (DSR).

The ratings also reflect Capacite's pick-up in order execution, ability to maintain comfortable margins and improved liquidity profile, the company said.

Capacite Infraprojects provides engineering, procurement and construction/turnkey solutions for housing, high rises, super high rises, speciality buildings and urban infrastructure. The company has recently forayed into development of projects for the public sector.

The company reported a consolidated net profit of Rs 17.08 crore in Q2FY22 as against a net profit of Rs 4.74 crore in Q2FY21. Net sales during the quarter increased by 89.4% YoY to Rs 33.39 crore.

The scrip shed 1% on Monday at Rs 170.20 on the BSE.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 29 2021. 16:17 IST
RECOMMENDED FOR YOU
.