Credit rating agency, CARE has assigned ‘CARE A1’ rating to the proposed Commercial Paper (CP) of Educomp Solutions for Rs 70.00 crore. The agency has also reaffirmed the assigned ‘CARE A1+’ rating to the Commercial Paper carved out of working capital facilities of the company for Rs 80.00 crore.
The rating factors in Educomp Solutions strong and experienced management, its dominant position as one of the leading education technology companies in India, strong growth in turnover, comfortable profitability margins and leverage ratios.
Going forward, ability of Educomp Solutions to manage cash flows effectively and successful implementation of substantial growth plans of its own and in its subsidiaries would be the key rating sensitivities.
Educomp Solution, offers diversified education solutions. It is the largest education company in India. It provides learning solutions to schools, governments, teachers, students and parents. The company’s posted net profit zoomed 122% to Rs 157.39 crore for the quarter ended March 31, 2011 as compared to Rs 71.05 crore for the quarter ended March 31, 2010. Its total income has increased from Rs 282.34 crore for the quarter ended March 31, 2010 to Rs 395.68 crore for the quarter ended March 31, 2011.
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