Suyog Gurbaxani Funicular Ropeways Receives CARE Ratings for Bank Facilities

Suyog Gurbaxani Funicular Ropeways Receives CARE Ratings for Bank Facilities​

CARE Ratings Limited has assigned credit ratings to the bank facilities of Suyog Gurbaxani Funicular Ropeways Limited (SGFRL). This rating assignment follows the expiration of the contract with the previous rating agency, CRISIL Ratings.

The ratings assigned by CARE Ratings Limited are as follows:


The details of the rated facilities, which cover a total of ₹80.00 crore, are presented below:

Company Profile and Financial Overview​

Suyog Gurbaxani Funicular Ropeways Limited (SGFRL) operates as a BSE-listed infrastructure development company engaged in the development, operation, and maintenance of funicular ropeway systems under the Build-Operate-Transfer (BOT) framework, primarily through Public Private Partnership (PPP) arrangements with government authorities. The company operates the Funicular Ropeway System at Saptashrungi Devi Temple in Nashik, Maharashtra.

In terms of revenue performance, the company reported the following for the last three years:


*PBILDT: Profit before interest, lease rentals, depreciation and tax

Key Rating Drivers and Analysis​

The rating assigned to SGFRL's bank facilities is supported by the experienced promoters and the established operational track record of its ropeway project. Strengths noted include the company's healthy operating margins and stable cash flows derived from its presence at a well-established pilgrimage location.

However, these strengths are constrained by several factors, including the modest scale of operations, a stretched working capital cycle attributed to high unbilled receivables from the Haji Malang project, and moderate debt coverage indicators. The rating is also constrained by exposure to operational and safety risks inherent in ropeway operations, and liquidity which remains dependent on the timely realization of receivables.

Key rating drivers indicate that the 'stable' outlook reflects the belief that the company will continue to benefit from its experienced promoters and established industry track record.

The company’s liquidity profile is deemed adequate, supported by stable cash flows from its operational BOT ropeway asset, though this is constrained by scheduled debt repayment obligations. The current ratio stood at 2.41x as on March 31, 2025, largely supported by unbilled revenue.

Rating Sensitivities​

Positive factors that could lead to rating improvement include:

• Growth in total operating income (TOI) exceeding ₹ 75 crore while maintaining current profit before interest, lease rentals, depreciation, and taxation (PBILDT) margins of 40% on a sustained basis.
• Addition of new ropeways leading to increased operational and financial performance, such as total debt/GCA remaining below 3 times.

Negative factors that could lead to rating actions include:

• Deterioration in profitability levels, causing total debt to PBILDT to exceed 5x on a sustained basis.
• Any unfortunate accident in the ropeway posing a concern to the company's credibility.
• Non-renewal of leases and the consequent impact on company operations.
• Any delays in the timely realization of receivables pertaining to the Haji-Malang project.

Stock Price Movement​

At the close of trading Thursday, Suyog Gurbaxani Funicular Ropeways Ltd settled at ₹118.00, dropping 5.14%. The shares moved across the day's session, swinging between a low of ₹118.00 and a high of ₹124.40.

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