Press Release

Press Release

May 28, 2025

GODAVARI COMMODITIES LIMITED
Rating Reaffirmed and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	130.00	ACUITE A+ \| Stable \| Upgraded	-
Bank Loan Ratings	370.00	-	ACUITE A1 \| Reaffirmed
Total Outstanding	500.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded the long-term rating to ‘ACUITE A+’ (read as ACUITE A plus) from 'ACUITE A'(read as ACUITE A) and also reaffirmed the short-term rating of 'ACUITE A1’ (read as ACUITE A one) on the Rs. 500.00 Cr. bank facilities of Godavari Commodities Limited (GCL). The outlook is ‘Stable’.

Rationale for rating upgrade

The rating upgrade reflects improvement in the company's financial risk profile marked by strengthening networth, healthy gearing level and strong debt coverage indicators. Further, it factors in the strong liquidity profile marked by healthy cash accrual generation against nominal repayment obligations and moderate reliance on working capital limits. Furthermore, it considers extensive experience of its promoters and established operational track record of over three decades in the coal trading industry. However, the operating performance moderated and stabilized in FY2024 post an exceptional high of FY2023 due to normalisation in coal price realizations, although this was offset by an increase in sales volume compared to FY2023. The revenue of the company stood at Rs. 1805.47 Cr. in FY2024 as compared to Rs. 2054.12 Cr. in FY2023. Further, GCL has recorded revenue of ~Rs. 1289.62 Cr. in 9MFY25. The rating remains constrained by the working capital-intensive nature of operations, exposure to fluctuations in demand and pricing, and challenges in the end-user industry. Going forward, the company's ability to sustain growth in scale of operations and improve profitability while maintaining its healthy financial risk profile will remain a key rating sensitivity factor.

About the Company

Incorporated in 1992, GCL is a Kolkata based company engaged in trading of non-coking coal. The company also provides coal handling, supervision, and transportation services. GCL is promoted by the Bhutoria family associated with coal trading since last three decades. Till fiscal 2012, it was only trading in domestic coal. However, from FY 2013, it also commenced trading in imported coal. Recently, the company has bagged contracts from West Bengal Mineral Development and Trading Corporation Ltd for excavation and loading of Sand from the riverbeds in West Bengal and transporting thereof to customers.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of GCL to arrive at this rating.

Key Rating Drivers

Strengths

Experienced management and established relationship with customers
Established in 1992, the company has an established track record of operations of over three decades. The promoter, Mr. Padam Chand Bhutoria and the Bhutoria family has more than three decades of experience in the coal trading business. The current directors of the company are Ms. Payal Bafna, Mr. Arun Kumar Maitra, Mr. Indraj Mal Bhutoria, Mr. Kamal Singh Bhutoria and Mr. Pranab Ray. The long-standing experience of the promoters and long track record of operations has helped them to establish comfortable relationships with key suppliers and reputed customers across the country. The clientele majorly consists of client having high credit worthiness and reputations in the market. Some of the key customers of the company are Saroj Commodities Private Limited, Tamil Nadu Generation and Distribution Corporation Limited, West Bengal Minerals Development & Trading Corporation Limited, Lalitpur Power Generation Company Ltd., Narayani Resources Private Limited to name a few.
Acuité believes that the extensive experience of the company’s management will continue to support its business risk profile.

Strengthening financial risk profile
The financial risk profile of the company stood healthy, marked by improving net worth, below unity gearing (debt equity) and debt protection metrics. The tangible net worth of the company increased to Rs. 857.02 Cr. as of March 31, 2024, reflecting sustained profitability and an increase from Rs. 755.79 Cr. on March 31, 2023, and Rs. 582.07 Cr. as on March 31, 2022, due to accretion of profits to reserves. The total debt of the company stood at Rs. 126.58 Cr. as on March 31, 2024, as against Rs. 76.32 Cr. as on March 31, 2023. The gearing (debt-equity) ratio stood below unity at 0.15 times as on 31 March 2024 as compared to 0.10 times as on 31 March 2023. The debt protection metrics moderated however overall stood healthy in nature with Interest Coverage Ratio of 12.92 times for FY2024 as against 27.68 times for FY2023. Debt Service Coverage Ratio (DSCR) stood at 11.91 times in FY2024 as against 17.75 times in FY2023. Total outside Liabilities/Total Net Worth (TOL/TNW) stood at 0.41 times as on 31 March 2024 as against 0.69 times as on 31 March 2023. Net Cash Accruals to Total Debt (NCA/TD) stood at 1.33 times for FY2024 as against 2.31 times for FY2023.
Acuité believes that GCL’s financial profile will continue to remain healthy in absence of any major debt funded capex plans over the medium term.

Stabilization in operating revenue post exceptional high of FY2023
The company's operating income declined by ~12.10%, to Rs. 1805.47 Cr. in FY2024, compared to Rs. 2054.12 Cr. in FY2023. This decline in revenue is attributed to a correction in coal prices compared to the elevated price levels of FY2023, although the volume sold has increased as compared to FY23 levels. In 9MFY25, the company reported revenues of ~Rs. 1289.62 Cr. Further, the operating margin for FY2024 declined to 7.31%, from 11.05% in FY2023. The decline was primarily attributed to a reduction in contribution margins, resulting from lower price realizations in FY2024. During FY2023, coal prices surged due to supply shortages caused by the Russia-Ukraine war, creating a demand-supply imbalance. This led to an exceptional performance in both revenue and margins in FY2023, driven by higher coal prices. Additionally, the Profit After Tax (PAT) margin declined to 5.60% in FY2024, as compared to 8.44% in FY2023, primarily on account of higher finance cost during the year.
Acuite believes that going ahead, the company's ability to sustain growth in its scale of operations and improvement in profitability shall remain as key rating monitorable.

Weaknesses

Intensive nature of working capital operations
The working capital management of the company is intensive in nature marked by increasing Gross Current Assets (GCA) of 187 days as on March 31,2024 as compared to 178 days as on March 31,2023. The inventory days increased to 61 days in FY2024 as compared to 42 days in FY2023. The debtor days stood at 65 days in FY2024 as against 76 days in FY2023. Further, the creditor days stood at 83 days in FY2024 as compared to 135 days in FY2023. The average utilization of working capital limits remained moderate with average fund-based limits utilisation at ~ 59.17% over the last twelve months ending December 2024, and non-fund-based limit utilisation at ~56.25% during the same period.
Acuité believes that the working capital operations of the company will remain at similar levels given the nature of the industry over the medium term.

Rating Sensitivities

Sustained growth in scale of operations while improving operating profitability and maintaining healthy financial risk profile
Elongation in working capital cycle

Liquidity Position

Strong

The company’s liquidity position is strong marked by generation of healthy net cash accruals of Rs. 103.23 Cr. in FY2024 as against its nominal maturing debt obligations of Rs. 2.96 Cr. in the same tenure. In addition, it is expected to generate sufficient cash accrual against its maturing repayment obligations over the medium term. The cash and bank balances of the company stood at Rs. 28.06 Cr. as on March 31, 2024, as compared to Rs. 35.25 Cr. as on March 31, 2023. The current ratio stood comfortable at 3.09 times as on March 31, 2024, as compared to 1.95 times as on March 31, 2023. Further, the working capital management of the company is intensive in nature marked by Gross Current Assets (GCA) of 187 days as on 31st March 2024, however, the reliance on working capital limits remained moderate with average utilisation of fund-based limits at ~ 59.17% over the past twelve months ending January 2025, and non-fund based limit utilisation at ~56.25% during the same period.
Going ahead, liquidity position of the company is expected to remain strong on account of healthy accruals against nominal repayment obligation and buffer available from unutilised bank-limits.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	1805.47	2054.12
PAT	Rs. Cr.	101.04	173.40
PAT Margin	(%)	5.60	8.44
Total Debt/Tangible Net Worth	Times	0.15	0.10
PBDIT/Interest	Times	12.92	27.68

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
15 Apr 2024	Cash Credit	Long Term	50.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	25.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE A \| Stable (Reaffirmed)
	Letter of Credit	Short Term	27.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	60.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	15.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	20.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	43.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	50.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	17.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	50.00	ACUITE A1 (Reaffirmed)
	Proposed Bank Guarantee	Short Term	73.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A1 (Reaffirmed)
06 Mar 2023	Cash Credit	Long Term	30.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	20.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	2.00	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE A \| Stable (Reaffirmed)
	Letter of Credit	Short Term	20.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	30.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	27.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	20.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	5.00	ACUITE A1 (Reaffirmed)
	Proposed Bank Guarantee	Short Term	10.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	15.00	ACUITE A1 (Reaffirmed)
	Proposed Letter of Credit	Short Term	3.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	33.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	15.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	25.00	ACUITE A1 (Reaffirmed)
	Proposed Bank Guarantee	Short Term	220.00	ACUITE A1 (Assigned)
27 Jan 2023	Cash Credit	Long Term	30.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	5.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	5.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	10.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	20.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Proposed Cash Credit	Long Term	15.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	5.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Letter of Credit	Short Term	20.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Letter of Credit	Short Term	5.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Letter of Credit	Short Term	30.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Letter of Credit	Short Term	27.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Bank Guarantee/Letter of Guarantee	Short Term	20.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Bank Guarantee/Letter of Guarantee	Short Term	5.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Proposed Bank Guarantee	Short Term	20.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Letter of Credit	Short Term	30.00	ACUITE A1 (Assigned)
	Letter of Credit	Short Term	5.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Bank Guarantee/Letter of Guarantee	Short Term	15.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Proposed Letter of Credit	Short Term	3.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Letter of Credit	Short Term	10.00	ACUITE A1 (Assigned)
14 Mar 2022	Cash Credit	Long Term	30.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	20.00	ACUITE A- \| Stable (Reaffirmed)
	Proposed Cash Credit	Long Term	25.00	ACUITE A- \| Stable (Reaffirmed)
	Letter of Credit	Short Term	20.00	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	30.00	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	15.00	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	15.00	ACUITE A2+ (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	20.00	ACUITE A2+ (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	5.00	ACUITE A2+ (Reaffirmed)
	Proposed Bank Guarantee	Short Term	40.00	ACUITE A2+ (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A1 \| Reaffirmed
ICICI Bank Ltd	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	17.00	Simple	ACUITE A1 \| Reaffirmed
Indusind Bank Ltd	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A1 \| Reaffirmed
Yes Bank Ltd	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	65.00	Simple	ACUITE A1 \| Reaffirmed
HDFC Bank Ltd	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A1 \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A+ \| Stable \| Upgraded ( from ACUITE A )
Yes Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE A+ \| Stable \| Upgraded ( from ACUITE A )
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A+ \| Stable \| Upgraded ( from ACUITE A )
ICICI Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A+ \| Stable \| Upgraded ( from ACUITE A )
Indusind Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A+ \| Stable \| Upgraded ( from ACUITE A )
RBL Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A+ \| Stable \| Upgraded ( from ACUITE A )
HDFC Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A+ \| Stable \| Upgraded ( from ACUITE A )
State Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A1 \| Reaffirmed
ICICI Bank Ltd	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	38.00	Simple	ACUITE A1 \| Reaffirmed
RBL Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE A1 \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	40.00	Simple	ACUITE A1 \| Reaffirmed
HDFC Bank Ltd	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE A1 \| Reaffirmed

Contacts

Mohit Jain
Senior Vice President - Rating Operations

Kirti Berlia
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.