Experienced management and long track record of operations
The firm established in 1999, is involved in the trading industry for more than two decades. The partners have forged strong relationships with a diverse group of customers and suppliers. Acuité believes that the experience of the management in the industry is likely to benefit the firm over the near to medium term.

Moderation in revenues while maintaining profitability margins 
The revenues of Amtrade moderated and stood at Rs. 127.52 Cr. in FY25 (Prov.) as against Rs.125.33 Cr. in FY24 and Rs.196.33 Cr. in FY23. This was on account of cancellation of few orders due to documentation issues. Amtrade caters to industries like Textile, Construction, petroleum etc. Majority of the products are imported from China. Around 95 per cent of the sales are local sales and the remaining are from Export Sales and Franchise Business. Around 95 percent of revenue is generated from trading activities and remaining from other businesses.
 
Profitability of the firm has remained stable with a range bound operating margin. In FY25 (Prov.) the firm has reported operating margin at 5.02 per cent. Operating margin of the firm stood at 4.26 per cent in FY24 as against 3.01 percent in FY23. The improvement in the margins is due better absorption of raw material, admin and selling expenses. PAT margins of the firm stood at 2.02 per cent in FY25 (Prov). and 0.34 percent in FY24 as against 1.38 percent in FY23. Acuite, believes the operating performance of the company would improve steadily owing to comfortable order book of turnkey projects.

Moderately intensive Working capital operations 
Working capital operations of the firm are moderately intensive marked by improvement in GCA of 229 days in FY25 (Prov.) as against 179 days in FY24 and 108 days in FY23. GCA days are driven by high debtor days which stood at 148 days in FY25 (Prov.) as against 115 days in FY24 and 70 days in FY23. The increase in debtor days is due to the ongoing turnkey projects from reputed clients. Inventory days stood at 46 days in FY25 (provisional) as against 27 days in FY24 and 17 days in FY23. Majority of the products are imported from China. Creditor days stood at 25 days in FY25 (Prov) as against 14 days in FY24 and 11 days in FY23. Acuite believes that working capital operations of the firm continue to remain moderately intensive considering elongated debtor days.

Below average financial risk profile
Financial risk profile of the firm remained below average with low net worth, high gearing and moderate debt protection indicators.  Net worth of the firm stood at Rs. 22.19 Cr. as on 31 March 2025 (Prov.) as against Rs. 20.55 Cr. as on 31March 2024. The improvement in the net worth is account of retention of profits to an extent. Gearing of the firm stood high at 2.30 times as on 31 March 2025 (Prov.) as against 1.98 times as on 31 March 2024 and 3.16 times as on 31st March 2023. The total debt of the firm stood at Rs.51.01 Cr. in FY25 (Prov.) as against Rs.40.78 Cr. in FY24 and Rs. 46.27 Cr. in FY23. Total debt of the firm comprises of short-term debt of Rs. 43.42 Cr. and unsecured loans of Rs.2.00 Cr. and long-term debt of Rs.4.56 Cr. Debt service coverage ratio (DSCR) stood average at 1.53 times in FY25 (Prov.) as against 1.18 times in FY24. Total outside liabilities to Tangible net worth (TOL/TNW) stood at 2.91 times as on 31 March 2025 (Prov.) as against 2.36 times as on 31 March 2024. Interest coverage ratio stood average at 1.92 times in FY25 (Prov.) as against 1.34 times in FY24. Net Cash Accruals to Total Debt (NCA/TD) of the firm stood at 0.07 times for FY25 (provisional) as against 0.04 times for FY24. Acuite believes that financial risk profile of the firm likely to improve owing to absence of major debt-funded capex.

Capital withdrawal risk associated with partnership firm
Being a partnership firm, firm is exposed to the capital withdrawal risk. Any significant withdrawal from the partner’s capital will have a negative bearing on the financial risk profile of the firm.