CARE assigns rating to Dynacons Technologies’ short-term bank facilities

Credit rating agency, CARE has assigned ‘A4+’ rating to Dynacons Technologies’ short-term bank facilities worth Rs 7 crore. The rating assigned to the bank facilities of Dynacons Technologies (DTL) is constrained by relatively small scale of operations with fluctuating income and cash accruals along with low profit margin, working capital intensive nature of operation with elongated collection period and presence in competitive industry.

DTL’s ability to increase its scale of operations and improve profit margin along with efficient management of working capital requirement is the key rating sensitivity. During FY15 (refers to April 01 to March 31), the total operating income of DTL stood at Rs 36.06 crore (compared to Rs 31.88 crore in FY14), while net profit of the company stood at Rs 0.10 crore in FY15 (compared to Rs 0.09 crore in FY14).