Key Rating Drivers
The affirmation reflects NIPL's continued delays in the servicing of the working capital term loan for the five months ended November 2013, despite restructuring of the other loan accounts over July 2012-March 2014.
The first installment of the term loan was due in June 2013, which was paid in September 2013. The repayment of the installment due in September 2013 is still pending.
The company continues to face stretched liquidity due to slow realizations from debtors.
Also, there was a 32% yoy drop in revenue to INR398.8m on the back of delayed approvals to start work and EBITDA margins fell to 2.7% (FY12: 19.3%).
Timely debt servicing for three consecutive months could result in a positive rating action.
Incorporated in 1993, NIPL is engaged in the pipeline infrastructure development for the installation of underground utilities, i.e., pipelines for carrying products such as oil & gas, optical fibres conduits, power transmission cables, etc.
--IBNS (Posted on 17-12-2013)