Acuit' Ratings upgrades Dynacons Systems's LT rating to 'A-' with 'stable' outlook

The agency has also upgraded the company's short-term rating to 'ACUITE A2+' from 'ACUITE A2'. The outlook is 'stable'.

Acuit' Ratings & Research said that the rating upgrade takes into account the significant improvement in the scale of operations in FY2024, and in H1 of FY2025, the same is expected to continue for the entire year FY2025.

The company's earning profile operating income, absolute EBITDA, and PAT has witnessed a strong growth of 27%,43% and 62%respectively in FY2024 in comparison to previous year, backed by improvement in the order book, coupled with a track record of repeat orders from key customers,

It also considers an improved financial risk profile and adequate liquidity. It also factors in a healthy order book position, which, coupled with a track record of repeat orders from key customers, DSSL caters to reputed clientele such as Facebook India, LIC, the Municipal Corporation of Greater Mumbai (MCGM), the Central Bank of India, the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), BSNL, Punjab National Bank, the Bank of Baroda, the Brihanmumbai Municipal Corporation, and Google India, to name a few.

Further, rating continues to derive strength from the promoters' extensive experience in industry.

The rating is, however, constrained by its presence in a highly competitive and fragmented industry, along with intensive working capital operations, and timely realization of its receivables will remain a key rating sensitivity.

Dynacons Systems and Solutions (DSSL) is an IT infrastructure company providing systems integration, networking solutions, facility management services, security solutions, and software services. It has also partnered with various IT companies, including Lenovo, Dell, HPE, HP, Cisco, IBM, Apple, Microsoft, Juniper, and Red Hat.

The scrip shed 0.76% to end at Rs 1441.15 on the BSE on Friday.

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