Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 6.00 ACUITE B+ | Upgraded & Withdrawn -
Total Outstanding 0.00 - -
Total Withdrawn 6.00 - -
 
Rating Rationale

­Acuité has upgraded and withdrawn its long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE B’ (read as ACUITE B) on the Rs.6.00 crore bank facilities of Gloria Alluminium India Private Limited (GAIPL). The rating has been withdrawn on account of the request received from the company and No Objection Certificate (NOC) received from the banker. The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility.

Rationale for the rating
The company has provided information, leading to transition from Issuer Not Co-operating (INC since 2024) to a regular issuer. the rating upgrade reflects the established track record of the management for over two decades in the same line of industry. The rating gets comfort from improved business & financial risk profile marked by revenue grew from Rs. 70.38 crore in FY2024 to an estimated Rs. 121.86 crore in FY2025(Prov.), and EBITDA margins which has slightly increased from 6.31% in FY24 to 6.46% in FY25(Prov.), indicating better operational control.  The financial risk profile is average reflected in net worth improvement to Rs. 10.82 crore in FY2025(Prov.) from Rs. 5.58 crore in FY2024, high but improving gearing at 3.42 times in FY25(Prov.) as compared to 8.34 times in FY2024, and comfortable debt protection metrics, with an ICR of 2.96 times and DSCR of 1.41 times in FY25(Prov.). The company maintains adequate liquidity with net cash accruals of Rs. 5.24 crore in FY2025(Prov.) and a current ratio of 2.23 times in FY2025(Prov.). However, the rating remains constrained by presence in a highly competitive and fragmented nature of industry.

About the Company

Gloria Alluminium India Private Limited (GAIPL) incorporated in the year 2016 is engaged in the manufacturing of Aluminium extrusions. The company is promoted by the Agarwal family led by Mr. R. M. Agarwal and Mr. P. M. Agarwal. The family has two decades of experience with another partnership firm by the name of Gloria Engineering Company which is established in the year 1996 and is engaged in the manufacturing of automotive components for commercial vehicles, passenger cars and farm equipment aggregates. The manufacturing unit of GAIPL is in Pune, Maharashtra. The manufacturing process for aluminium extrusions involves a heating and moulding of aluminium scraps and Ingots as per the requirements of the client.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach
­Acuité has considered the standalone business and financial risk profiles of GAIPL to arrive at this rating.
 
Key Rating Drivers

Strengths

Experienced management
GAIPL is promoted by Agarwal family led by Mr. R.M. Agarwal, Mr. P.M. Agarwal, Mr. A.R. Agarwal and others who have more than two decades of experience through a partnership firm by the name of Gloria Engineering Company which was established in the year 1996 and engaged in the manufacturing of automotive components for commercial vehicles, passenger cars and farm equipment aggregates. The promoters are being supported by its team of experienced professionals in managing day to day operations of GAIPL. The extensive experience of the promoters has helped GAIPL to establish a healthy relationship with its customers and suppliers.

Scale of Operations & Profitability
In FY2025 (provisional), the company reported a significant increase in revenue, reaching Rs. 121.86 crore compared to Rs. 70.38 crore in FY2024. This robust growth can be largely attributed to the company's strategic efforts to acquire new orders, supported by expansion activities undertaken in December 2024. The addition of new machinery has enhanced the company's capacity to fulfil higher order volumes. Currently, the company maintains a monthly order book valued between Rs. 15-20 crore, which is expected to be executed by month-end, reflecting healthy demand. The EBITDA margin has shown a marginal improvement from 6.31% in FY2024 to 6.46% in FY2025 (provisional). The company is effectively managing its operational costs while experiencing increased sales, indicating a positive trend in operational efficiency and profitability. The company’s Profit After Tax (PAT) margin witnessed an increase to 4.30% in FY2025 (prov.) from 1.22% in FY2024. The company’s Return on Capital Employed (ROCE) stood healthy at 15.82% in FY2025 (prov.), up from 6.67% in FY2024.

Moderate working capital management
The company has moderate working capital cycle as evident from gross current assets (GCA) of 87 days for FY2025 (prov.) and 132 days for the FY2024. The inventory days stood at 45 days in FY2025 (prov.), from 76 days in FY2024. The debtor days stood at 34 days in FY2025 (prov.), from 42 days in FY2024. The creditor days stood at 10 days in FY2025 (prov.), from 40 days in FY2024.
 


Weaknesses

Highly competitive and fragmented nature of industry
GAIPL commenced its business operations in the year 2016 and the company operates in a highly competitive and fragmented industry, characterized by a large number of players. This can have an impact on the profitability margins of the company. However, this can be partially offset by the extensive experience of the promoters in the business line.

Rating Sensitivities
­Not Applicable
 
Liquidity Position
Adequate

The company has adequate liquidity marked by net cash accruals of Rs. 5.24 Cr. in FY2025 (prov.) as against Rs.2.93 Cr. of debt obligation over the same period. Further, the current ratio of the company stood at 2.23 times in FY2025 (prov.). The intensive working capital cycle of the company is marked by Gross Current Assets (GCA) of 87 days for FY2025 (prov.) as compared to 132 days for the FY2024. The bank limit utilization has been moderate, averaging approximately 70-80 percent over the last six months, ending in June 2025 confirmed from the banker. Acuité believes that the liquidity of the company is likely to remain adequate over the medium term backed by steady accruals, moderately utilised short-term borrowings and moderate current ratio. The cash and bank balance stood at Rs.0.09 Cr. in FY2025 (Prov.).
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Provisional) FY 24 (Actual)
Operating Income Rs. Cr. 121.86 70.38
PAT Rs. Cr. 5.24 0.86
PAT Margin (%) 4.30 1.22
Total Debt/Tangible Net Worth Times 3.42 8.34
PBDIT/Interest Times 2.96 2.54
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
Note on complexity levels of the rated instrument

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
21 Aug 2024 Cash Credit Long Term 5.40 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+ | Stable)
Term Loan Long Term 0.60 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+ | Stable)
26 May 2023 Term Loan Long Term 0.60 ACUITE B+ | Stable (Reaffirmed)
Cash Credit Long Term 5.40 ACUITE B+ | Stable (Reaffirmed)
28 Feb 2022 Cash Credit Long Term 5.02 ACUITE B+ | Stable (Reaffirmed)
Term Loan Long Term 0.98 ACUITE B+ | Stable (Reaffirmed)
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Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Small Industries Development Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.40 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE B )
Small Industries Development Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.60 Simple ACUITE B+ | Upgraded & Withdrawn ( from ACUITE B )
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