Rating Rationale

Brickwork Ratings assigns BWR BB- for the Bank Loan facilities
aggregating

7.90 Cr of Orion CNC Components Limited.

Brickwork Ratings (BWR) has assigned the following Ratings1 for the Bank Loan Facilities of
7.90 crores of Orion CNC Components Limited (OCCL or the Company):
Proposed
Facilities

Total Amount in
Rs. Cr

Tenure

Rating

Fund Based Limits

Cash Credit

BWR BB-

1.50

(Pronounced as

Long Term
Secured Loan

6.40

Total

7.90

BWR Double B minus)

Outlook:Stable
INR Seven Crore and Ninety lakhs only

BWR has essentially relied upon the audited financial results of the company upto FY14,
publicly available information and information/clarifications provided by the management.
The rating draws strength from the extensive industry experience of the promoters in the
forging industry and the consistent growth in revenue. These rating strengths are partially
offset by the small scale of operations, below average financial risk profile marked by low
networth and stretched receivables, intensely competitive industry, customer concentration
risk and working capital intensive nature of operations.
Background:
Orion CNC Components Ltd was established in 2010 at Bangalore, Karnataka. The Company is
engaged in manufacturing a diversified range of CNC Components in different materials of
construction such as stainless steel, mild steel, iron and other allied metals & alloys. OCCL
manufactures around 200 different varieties of components as per clients specifications. Some
of the reputed customers of OCCL are Ace Manufacturing Systems Ltd, Cargotech, Amarsons
Engineering Pvt Ltd, ,Global CMC Ltd etc.
Financial Performance:
OCCL reported Net Revenue of Rs.9.32Crs and PAT of Rs 0.36 Crs in FY14 as against Net
Revenue of Rs.6.01 Crs and PAT of Rs 0.31 Crs in FY13. On a provisional basis, OCCL has
achieved around Rs 14 Crs for 9MFY15 and targets around Rs 18 Crs of Net Revenue for FY15.
1

Please refer to www.brickworkratings.com for definition of the Ratings

www.brickworkratings.com

11 Feb 2015

Rating Outlook:
The rating outlook is expected to be stable over the current year. Going forward, the ability of
the company to increase its scale of operations, improve profitability, strengthen its capital
structure and manage its working capital efficiently would be the key rating sensitivities.
Analyst Contact

Relationship Contact

analyst@brickworkratings.com425-24

bd@brickworkratings.com

Phone

Media Contact

1-860-425-2742

media@brickworkratings.com

Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources,
which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or
completeness of the information obtained. And hence, the information in this report is presented as is without any express or implied warranty
of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR
should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses
incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any
reasons.

www.brickworkratings.com

11 Feb 2015