CRISIL credit report 2021 – Second highest grade for LiteBreeze
LiteBreeze has successfully advanced to the second-highest rating of SME 2 which indicates a ‘high’ level of creditworthiness from the third place of ‘good’ in 2020 as per CRISIL’s rating. This signifies not just our improved rating but also our continual growth during recent tough times.
Highlights from the report:
- Organisational stability: The company has been in the business for over 16 years. Over the years, strong relationships have been established with major customers, resulting in a stable stream of repeat as well as new orders.
- Well-defined organisational structure: The company has qualified and experienced second-tier management with decision-making powers. It is expected to benefit from the management’s ability to ensure a smooth flow of operations.
- Business and financial support from the parent, (LiteBreeze AB): The company receives continuous business and operational support from the Swedish parent company. For fiscal 2022 the company recorded 75.00% of the total value of the assignment and the remaining 25.00% has been given to the parent company as a commission.
- Good business certainty and strong business model: The company has demonstrated secular growth in revenue for the past three financial years, which is reflected in an increase in net sales to Rs 794.22 lakh in fiscal 2021 from Rs 517.59 lakh in fiscal 2019.
- Adequate liquidity: The company has maintained an adequate current ratio of 1.31 times and healthy Cash/TOL of 79.23% in fiscal 2021, which reflects its ability to meet short-term debt obligations and implies that the company has an efficient operating cycle.
LiteBreeze’s debt protection measures are healthy. With an interest coverage ratio of 63.08 times and net cash accrual to total debt ratio of more than 100%, debt service coverage ratio of 11.69 times for fiscal 2021.
The company’s ability to enhance operational efficiency while scaling up is clear as it registered a moderate operating profit before depreciation, interest, and tax (OPBDIT) margin of 15.69%, profit after tax (PAT) margin of 5.44% in fiscal 2021.
Financial risk factors this year included “moderate net worth”. A moderate net worth of the company limits the financial flexibility of the company to raise additional debt during the time of exigency. Companies with moderate net worth are less resilient to external shock as compared to companies with healthy net worth.
We publish our CRISIL rating every year to demonstrate our financial strength to prospective clients, colleagues and potential future employees. Our parent company’s support adds another layer of financial stability and security for all our stakeholders.
Our CEO David Claesson and top management are committed to our company’s focus on providing high-impact, complex and customized web programming services to clients worldwide.
The improved 2021 rating from CRISIL encourages us at LiteBreeze to ensure its high service standards by continuously evolving and keeping up with the changing market trends while aiming high to provide flawless software development services to our clients.
The ability to provide great service quality while striving for perfection is amongst our top criteria when recruiting talented IT professionals.
We are always on the lookout for dedicated developers to add to the LiteBreeze family. Feel free to contact us via email@example.com to know more about why LiteBreeze should be your next choice for an employer.