Rating Rationale

Rating Rationale
Brickwork Ratings assigns ‘BWR BB-’ for the Bank Loan Facilities of Omkar Nests
Pvt. Ltd.
Brickwork Ratings (BWR) has assigned the following Rating1 for the Bank Loan Facilities of
Omkar Nests Pvt. Ltd (‘ONPL’ or the ‘Company’):
Limits
(₹ Cr)
Tenure
Fund Based
Term Loan
60.00
Long Term
Total
60.00
Facility
Rating
BWR BB–
(Pronounced BWR Double B Minus)
Outlook : Stable
(INR Sixty Crores only)
BWR has principally relied upon the audited financial statements up to FY14, publicly available
information and information/clarifications provided by the company's management.
The ratings draw strength from the experienced promoters in the Construction business,
successful completion of more than 18 projects until now, strategic location of the Royal Nest
(Greater Noida) project and the satisfactory response from the customers until now for the sale
of ongoing projects. The ratings are, however, constrained by the project execution risk ,sale of
remaining unsold units, low tangible net worth coupled with low debt coverage ratios and
inherent risks associated with the real estate sector.
Company Profile
Omkar Nests Pvt. Ltd was established in 2000 in Delhi. The Company is engaged in real estate
business. Until now, the Company has completed more than 18 projects in Delhi and its nearby
region. Currently, the Company has undertaken two residential & township projects – Royal
Nest (Greater Noida) & Royal Nest II (Jammu). The Company has availed term loan from
Punjab & Sind Bank for executing Royal Nest, Greater Noida project.
Project “Royal Nest”
The Company is implementing a residential township project called “Royal Nest” – Greater
Noida, Uttar Pradesh. The project aims at providing affordable and quality residential
apartments. The total area of the project is 6.01 acres that comprises of 677 residential flats and
23 commercial shops. The total number of towers is eight. Currently, the Company has managed
to sell 45% of the total project. The expected date of completion is March 2017.
Management Profile
The key promoters of the Company are Sh. Omkar Nath, Sh. Kamal Krishan and Sh. Vimal
Kumar who started the construction of multi-storey flats in Delhi NCR region more than a
decade ago.
1
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1
28 Oct 2014
Currently, the Company is running two projects. Sh. Omkar Nath & Sh. Kamal Krishan look
after the operations of Royal Nest II (Jammu) project and Sh. Vimal Kumar handles the
operation of Royal Nest project located in Greater Noida.
Financial Performance:
ONPL has reported revenue for FY14 at ₹ 23.40 Cr from the sale of residential apartments and
commercial complexes. ONPL has sold approx. 45% of the total project and until now, the
consideration of approx. ₹ 55.24 Cr against 307 flats and 7 shops reported to have been received.
Tangible Networth is reported at ₹ 5.66 Cr in FY14 as against ₹5.36 Cr in FY13.
Rating Outlook
The outlook is expected to be stable over the current year. Going forward, the ability of the
company to complete its projects in a timely manner as per schedule, ensure saleability of the
units, ensure infusion of funds by the promoters as and when required and improve its debt
coverage and profitability level would be 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.
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28 Oct 2014