Gaurs Group gets ICRA rating upgrade

Credit rating agency ICRA has awarded BBB+ with Stable Outlook rating to Gaurs Group, also known as Gaursons India.

The rating upgrade reflects the reduction in Gaurs Group’s debt levels, which coupled with the healthy execution and the continued sales momentum in ongoing performance, has improved the Group’s cash flow adequacy ratio, according to a press release.

The Group said the rating given is based on strong listing due to timely payment to banks, strong receivables, and timely deliveries. It reflects ICRA’s expectation that the financial and operational risk profile of the group will remain strong, going forward, driven by its established market position in the real estate sector.

Manoj Gaur, CMD, Gaurs Group, said, “The rating is a seal of approval for the greatest level of security in terms of meeting financial commitments on time and delivering on our promises. We are committed to deliver quality projects on time, and will continue to contribute positively towards the development of the country’s infrastructure.”

Talking about the Group’s plans, Sarthak Gaur, Director, Gaurs Group, said, “We would soon be launching three to four new projects in Noida, Delhi and Ghaziabad. We are looking forward to foray into luxury housing. We have been working on establishing our commercial footprints in the last 2-3 years and also in completing the projects on floor including the mammoth Gaur City township.”

Vineet Singhal, CFO, Gaurs Group, said, “The rating takes into account the Group’s better-than-expected financial performance, as seen by the company’s healthy revenue growth, increased operating profits, and improved profit margins. The Group’s great performance has continued, with the company achieving its best-ever results in recent years. Profitability and accruals are expected to support growth in the current fiscal year, as well as the development of a sizable portfolio, which will increase the company’s financial flexibility. We should further see a reduction in debt in the next nine months by around Rs 500 crore as more big-ticket projects will reach completion.”