Short term bank facilities of Triveni Byapar Company rated A4; Company promoted by Sanghai business family

Thu, Feb 27, 2020 12:16 PM on Credit Rating, Latest,
Short term...

CARE Ratings Nepal Limited (CRNL) has assigned rating of CARE-NP A4 to the short term bank facilities of Triveni Byapar Company Private Limited (TBC). 

Key Rating Weaknesses

  • Tight liquidity position leading to cash flow mismatches and some instances of delays in repayment of the bank obligations in recent past
  • Weak debt coverage indicators
  • Working capital intensive nature of operations marked by long standing debtors
  • Exposure to volatile interest rates
  • Foreign exchange fluctuation risk
  • Fragmented industry with competition from both domestic and international players

Key Rating Strengths

  • Established and long track record of operations along with strong promoters and experienced management team in the related field
  • Growth in margins and profitability in FY19, although subdued sales
  • Liquidity profile supported by liquid investments in listed shares
  • Diversified distribution network with established brands
  • Increasing demand of consumer electronic products in Nepal

About the Company

Triveni Byapar Company Private Limited (TBC) is promoted by different individuals belonging to the Sanghai business family and was incorporated on June 12, 2008 (date of conversion of company from Public Limited to Private Limited). TBC is involved in trading of consumer goods of various international brands like Samsung, Sansui, Panasonic and Symphony and also in assembling of Samsung LED TV. Company also has an in-house brand “Yasuda” under which various home appliances are manufactured through OEM‟s from China from the last 10 years. 

Brief Financial Performance during the last 3 years is as follows:

(Rs. In Million)

For the year ended Mid July

FY17 (A)

FY18 (A)

FY19 (A)*

Income from Operations

      1,756 

      2,115 

      2,010 

PBILDT

           85 

           74 

         127 

PAT 

           44 

           (6)

           15 

Overall Gearing (times)

        1.94 

        1.95 

        2.23 

Interest coverage (times)

        1.76 

        0.97 

        1.47 

*Audited

Details of the Facilities rated

Nature of the Facility

Type of the Facility

Amount 

(Rs. Million)

Rating

Short Term Bank Facilities

Fund based limits

590.00

CARE-NP A4

Short Term Bank Facilities

Non-fund based limits

610.00

CARE-NP A4

Total 

 

1,200.00

 

Source: https://careratingsnepal.com/

Read the full report here.