Press Release July 30, 2025 GIRJAI INFRASTRUCTURES PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	85.50	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	14.50	-	ACUITE A3 | Assigned
Total Outstanding	100.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­Acuite has assigned the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating of ‘ACUITE A3’ (read as ACUITE A three) on Rs.100.00 crore bank facilities of Girjai Infrastructures Private Limited (GIPL). The outlook is ‘Stable’. Rationale for the rating The rating reflects the company’s track record of operations spanning almost seven year in executing civil projects. Further, company witnessed an improvement in its scale of operations marked by an operating income of Rs. 210.78 Cr. in FY2025 (prov.) as against Rs. 197.68 Cr. in FY2024 and Rs. 107.50 Cr. in FY2023. The current order book of Rs. 1011.04 Crore approximately as on April 2025 provides revenue visibility over the medium term. The ratings also factor in company’s moderate financial risk profile marked by its moderate net worth, moderate gearing ratio and debt protection ratios. However, the ratings are constrained by intensive working capital operations.

About the Company

­­Maharashtra based, Girjai Infrastructures Private Limited Company was incorporated in 2018 as a Private Limited Company. It is engaged in the construction of Dams, bridges, barrages, tunnels, Canals, Highways and major building works. Current the directors of the company are Mrs. Parvati Mahadev Morge, Mr. Mahadeo Baliram Morge, Mr. Akash Shankarrao Morge, Mr. Shankar Baliram Morge and Mr. Mangal Shankar Morge.

Unsupported Rating

­Not applicable

Analytical Approach

­­Acuite has considered standalone financial and business risk profile of Girjai Infrastructures Private Limited (GIPL) to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Management GIPL is promoted and managed by Mr. Shankar Baliram Morge, Mr. Mangal Shankar Morge, Mr. Akash Shankarrao Morge, Mr. Mahadeo Baliram Morge and Mrs. Parvati Mahadev Morge, who have around two decades of experience in the civil construction industry and they been associated with the company since its inception. They are actively involved in managing the day-to-day affairs of the company along with the support of qualified and experienced professional. Acuite believes that the benefits of the promoters experience is expected to continue to be available to the company. Improvement in ­­scale of operations The company witnessed an improvement in its scale of operations marked by an operating income of Rs. 210.78 Cr. in FY2025 (prov.) as against Rs. 197.68 Cr. in FY2024 and Rs. 107.50 Cr. in FY2023. Further, the company has a healthy unexecuted order book position to the tune of Rs. 1011.04 Crore approximately as on 10th April 2025. Going forward, the ability of the company to bag new orders and timely execution of the existing orders will remain a key rating monitor able. The EBITDA margin of the company stood at 14.27 per cent in FY2025 (prov.) as against 12.43 per cent in FY2024 and 12.64 per cent in FY2023. The PAT margin of the company stood at 5.00 per cent in FY2025 (prov.) against 5.04 per cent in FY2024 and 5.79 per cent in FY2023. Though the company’s profitability is exposed to volatility in raw material, it has an in-built price escalation clause for major raw materials in its contracts which works more than 12 months. Going forward it is expected to be improved in near to medium term. Moderate Financial Risk Profile The financial risk profile of the company is moderate marked by adjusted net-worth of Rs. 78.19 Crore as on 31st March 2025 (prov.) against Rs. 67.66 Crore as on 31st March 2024 increase in net worth is on account of profit accretion and treatment of unsecured loan as quasi equity. Further, the total debt of the company stood at Rs. 108.54 Crore as on 31st March 2025 (prov.) against Rs. 64.61 Crore as on 31st March 2024. The capital structure of the company is moderate marked by gearing ratio of the company which stood at 1.39 times as on 31st March 2025 (prov.) against 0.95 times as on 31st March 2024. Further, the coverage indicators of the company reflected by interest coverage ratio and debt service coverage ratio of the company which stood at 3.82 times and 1.06 times respectively as on 31st March 2025 (prov.) against 4.34 times and 1.07 times respectively as on 31st March 2024. The DSCR ratio would remain a monitorable. The TOL/TNW ratio of the company stood at 2.50 times as on 31st March 2025 (prov.) against 1.30 times as on 31st March 2024 and DEBT-EBITDA of the company stood at 3.54 times as on 31st March 2025 (prov.) against 2.62 times on 31st March 2024. Acuité believes that going forward the financial risk profile of the company will remain moderate with debt funded capex in near to medium term.

Weaknesses

­­Working Capital operations The working capital operations of the company is intensively marked by GCA days which stood at 270 days as on 31st March 2025 (prov.) against 137 days as on 31st March 2024. There is a significant increase in the GCA days due to the inventories days of the company which stood at 86 days in FY25 (prov.) against 29 days in FY24 and debtors days of the company stood at 156 days in FY25 (prov.) against 95 days in FY24. Whereas, creditor days of the company stood at 493 days in FY25 (prov.) against 74 days in FY24. Inventory, Debtor and Creditor days are appearing high on year end as company reported higher operating income in last quarter of FY25 (prov.) i.e. ~66% of the total revenue. Acuité believes that the working capital operations of the company is expected to improve in near to medium term. Highly competitive industry marked by tender based nature of business The company’s performance is susceptible to the tender based nature of business, where the business depends on the ability to bid for contracts successfully. Risk become more pronounced as tendering is based on minimum amount of biding of contracts.

Rating Sensitivities

­Movement in scale of operations and operating margin Timely execution of order book Movement in debt protection metrics Movement in Working capital operations ­

Liquidity Position

Adequate

The liquidity profile of the company is adequate. The net cash accruals of company stood at Rs. 17.61 Cr. in FY25 (prov.) against the debt obligation of Rs. 16.27 Cr. for the same period. The company’s current ratio stood at 1.24 times for FY25 (prov.). The average fund based bank limit utilization is at 85.43% and non-fund based bank limit utilization is at 40.02% for the 12 months’ period ending May 2025. The company has cash & bank position of Rs. 0.51 Cr. and Rs. 4.75 Cr. investment in fixed deposits which is entirely unencumbered. Acuité believes that the liquidity position of the company will remain adequate on account of healthy net cash accruals against matured debt obligations, healthy current ratio albeit debt funded capex plans over the medium term.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	210.78	197.68
PAT	Rs. Cr.	10.53	9.96
PAT Margin	(%)	5.00	5.04
Total Debt/Tangible Net Worth	Times	1.39	0.95
PBDIT/Interest	Times	3.82	4.34

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

­None

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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 :

­Not applicable

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.50 Simple ACUITE A3 | Assigned HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 37.50 Simple ACUITE BBB- | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A3 | Assigned Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 48.00 Simple ACUITE BBB- | Stable | Assigned

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg 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.