The agency has reaffirmed its ‘Crisil BBB+/Stable’ rating on the long-term bank facilities of DSL.
Crisil Ratings stated that the rating continues to reflect the established market position and healthy financial risk profile of DSL. These strengths are partially offset by susceptibility of revenue to changing credit card schemes and volatile operating margin.
The agency further said that steady revenue growth per fiscal while maintaining the operating margin at 8-9%, leading to higher-than-expected net cash accrual, and sustenance of healthy financial risk profile amidst efficient working capital management
However, a decline in operating income or operating margin falling below 5%, resulting in lower-than-expected net cash accrual, and stretch in the working capital cycle leading to high dependence on external debt and thus moderation in financial risk profile could result in an adverse rating action.
Based in Gurugram (Haryana), Dreamfolks Services (DSL) is India's largest airport service aggregator platform. It provides services such as lounges, food and beverages, spa, meet and assist, airport transfer, transit hotels/nap room access and baggage transfer. Clients include major card networks, banks, online travel agents, airlines and enterprises.
The scrip had risen 0.75% to end at Rs 273.80 on the BSE today.