India Ratings and Research has revised Nila Infrastructures Limited’s Outlook to Negative from Stable.
The Outlook revision reflects Ind-Ratings expectation that the company’s net leverage will remain high in FY17, after deteriorating to 5.6x in FY16 due to low EBITDA margin and increasing scale of operations.
The company had an unexecuted order book of Rs. 3,664.5m (2x FY16 revenue) for the infrastructure business segment at end-October 2016, to be executed over a period of three years.
Nila’s order book continues to be dominated by low complexity infrastructure projects (including affordable housing projects), contributing 86% to the revenue in FY16 (FY15: 64.9%).