Zenith Precision Private Limited

ZPPL was incorporated in 1986 and has been manufacturing of precision components business since then. It has established a long track record of operation which enables the company to bag repeat orders from its existing cus tomers and acquire new customers. Mr Deepak Pinto, Managing Director of the company has over 2 decades of experience business of machining. A graduate in MS IE from Texas Tech, USA, he has worked in the United States before returning to India to take the family

Due to long track record of operations, the company has established customer base such as B osch Limited, GE Transportation Systems, USA, Goodrich Aerospace Services Private Limited, Goodrich Aircraft Interior Products, Volvo India Private Limited, Wipro Enterprises Limited among others. Strong business relationship with these customers has enabl ed the company to get repetitive orders from these customers. Diversified revenue streams

The products manufactured by the company find its application in automotive, locomotive, medical components and aero - space industries. The company gets about 65% of the revenue from sale of aerospace components while the rest 35% of the revenue is generated from sale on non-aerospace components to other industries. About 86% of the sales are exports and deemed exports. The components are exported to USA. Favourable demand outlook of precision tool and aerospace industry

The Indian economy has witnessed phenomenal growth in the last decade emerging as a global manufacturing hub. There exists ample opportunities in high technology oriented Aerospace, Locomotive, Power an d general engineering sectors. With the current “Make in India” initiative, growth prospects are very positive. Thus, it is imperative for ZPPL to maintain quality of its products and increase its scale of production while upgrading its technologies to ben efit from the industry

Applicable criteria Policy in respect of Non-cooperation by issuer Definition of Default Financial Ratios – Non financial Sector CARE's Rating Methodology- Manufacturing Companies 2 CARE Ratings Limited Press Release

A A Total operating income 33.99 42.50 PBILDT 5.36 4.94 PAT 0.74 0.14 Overall gearing (times) 2.01 2.28 Interest coverage (times) 1.89 2.52 A: Audited;

As per the bank statements analysis, there are penal charges debited to term loan due to del ay in repayment of principal and interest due to stretched liquidity position. Small scale of operations albeit to growth The scale operations marked by the total operating income has grown by 25.04% although stood small at Rs. 42.50 crore in FY19. The growth in TOI is due to favourable marked condition for aerospace industry coupled with repeated order

The scale operations marked by the total operating income has grown by 25.04% although stood small at Rs. 42.50 crore in FY19. The growth in TOI is due to favourable marked condition for aerospace industry coupled with repeated order from existing customers and addition of new customers during the year. Further, ZPPL has registered the total operating income of Rs. 40.34 crore for 10MFY20 (prov.). Financial risk profile marked by the declined profitability margin, leveraged capital structure and

The operating cycle of ZPPL stood elongated despite of improvement from 243 days in FY18 to 180 days in FY19. This is due to realization of receivables and marginal improvement in inventory holding period from 207 days in FY18 to 173 days due to fast movement of finished goods on back of favourable market condition. The processing of the orders takes 1 CARE Ratings Limited Press Release 10-12 weeks during the period most of raw material, semi -finished products remains in the ma nufacturing proc

Long track record of operations with experienced promoters in the precision tool industry ZPPL was incorporated in 1986 and has been manufacturing of precision components business since then. It has established a long track record of operation which enables the company to bag repeat orders from its existing cus tomers and acquire new customers. Mr Deepak Pinto, Managing Director of the company has over 2 decades of experience business of machining. A

Due to long track record of operations, the company has established customer base such as B osch Limited, GE Transportation Systems, USA, Goodrich Aerospace Services Private Limited, Goodrich Aircraft Interior Products, Volvo India Private Limited, Wipro Enterprises Limited among others. Strong business relationship with these customers has enabl ed the company to get repetitive orders from these customers. Diversified revenue streams

The products manufactured by the company find its application in automotive, locomotive, medical components and aero - space industries. The company gets about 65% of the revenue from sale of aerospace components while the rest 35% of the revenue is generated from sale on non-aerospace components to other industries. About 86% of the sales are exports and deemed exports. The components are exported to USA. Favourable demand outlook of precision tool and aerospace industry