Press Release

Press Release

September 22, 2025

NEEMUCH PROTEINS LLP
Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	58.72	ACUITE BB+ \| Stable \| Reaffirmed	-
Bank Loan Ratings	6.28	Not Applicable \| Withdrawn	-
Total Outstanding	58.72	-	-
Total Withdrawn	6.28	-	-

Rating Rationale

Acuite has reaffirmed its long-term rating of 'ACUITE BB+' (read as ACUITE double B plus) on Rs.58.72 Cr. bank facilities of Neemuch Proteins LLP (NPLLP). The outlook remains 'Stable'.
Further, Acuite has also withdrawn its long-term rating on the Rs. 6.28 Cr. bank facilities of NPLLP without assigning any rating as it is proposed long term bank facility. The rating is withdrawn on account of request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for rating

The rating reaffirmation reflects the established operational track record and experience of the partners in the edible oil industry over decades. The financial risk profile of the firm is moderate on account of increase in networth and comfortable capital structure. The scale of operations witnessed a decline in operating income and PAT margins during FY25. The company have expansion plans into edible segment of seeds that is expected to be enhance the scale of operations both in terms of revenue and profitability in the coming years. The rating gets comfort from adequate liquidity backed by sufficient accruals against debt repayments, prepayments of debt, comfortable current ratio, moderate bank limit utilization and efficient working capital cycle. The rating is constraint from fluctuating prices of the raw materials which may vary in scale of operations, but EBITDA margin has marginally increased.

About the Company

Madhya Pradesh Based, Neemuch Proteins LLP it was established in 2020 and the commercial production started in the month of November 2022. It is engaged in Extraction of Soya Crude oil from soyabean and refining of the extracted crude oil further. Currently Mrs. Madhu Bala Patidar, Mr. Dheeraj Kumar Modi, Mr. Omprakash Agrawal, Mr. Sanjay Kumar Agarwal, Mr. Kamal Kumar Modi, Mr. Kalyani Patidar and Mr. Sandeep Modi are the partners of the company.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone business and financial risk profile of NPLLP to arrive at the rating.

Key Rating Drivers

Strengths

Moderate Financial Risk profile
The firm has moderate financial risk profile marked by increase in net worth, gearing below unity and comfortable debt protection metrics. The total tangible net worth stood at Rs. 40.38 Cr. as on 31 March 2025 as against Rs. 28.99 Cr. as on 31 March 2024 due to small accretion of reserves and unsecured loans of Rs.7.00 Cr. has been converted into equity. The unsecured loans (USL) stood at Rs.0.25 Cr. in FY25 as against Rs.11.94 Cr. in FY24. The gearing improved to 0.29 times in FY25 as against 1.57 times in FY24. The Total outside liabilities to total net worth (TOL/TNW) stood at 0.69 times as on FY2025 compared to 1.89 times as on FY2024. The debt protection metrics of the company stood comfortable as indicated from the interest coverage ratio at 4.12 times for FY2025 as against 3.74 times in FY2024 and Debt Service Coverage Ratio stood at 2.41 times in FY2025 as compared to 2.84 times in FY2024. Acuité believes that going forward, the financial risk profile will continue to remain on similar lines despite debt funded capex plans.

Efficient working capital cycle

The working capital cycle was efficient as reflected from GCA days of 19 days in FY2025 as against 21 days in FY2024. Inventory days stood at 15 days in FY2025 as against 14 days in FY2024. The firm has to maintain stock of soyabeans for minimum of 7-8 days depending on the price of raw materials. Debtor days stood at 3 days in FY2025 as compared to 4 days in FY2024. The credit terms with customers are ~8 days for DOC and crude oil. The edible oil is accepted on cash basis. Further, Creditor days stood at 7 days in FY2025 as compared to 4 days in FY2024. The credit terms with suppliers are ~5 days. Acuite believes that the working capital cycle is likely to remain at similar levels over the medium term.

Weaknesses

Decline in operating income and PAT during FY25
The operating income of the firm stood at Rs.765.44 Cr. in FY25 as against Rs.872.93 Cr. in FY24 due to low realizations. Also, early monsoons adversely affected soyabean crop. The company recorded Rs.164.46 Cr. in revenue in Q1FY26, supported by improving price realizations. The firm receives orders on a daily basis and deliver it within 7 days. The PAT margin also declined marginally to 0.62% in FY25 from 0.71% in FY24. Acuite believes the scale of operations will improve over the medium term backed by order inflows.

Vulnerability to volatility in raw material prices albeit marginal increase in operating margin during FY25
The firm’s operations remain exposed to the inherent risks of the agriculture-based commodity business, including erratic monsoons and fluctuating raw material prices. These factors can lead to higher input costs and impact margins. However, the firm has managed to pass on raw material price fluctuations to its customers. Additionally, changes in delivery terms from buyer-site delivery in FY24 to factory pick-up in FY25 have significantly reduced freight expenses. Along with improvements in product quality and technology, these factors contributed to a marginal increase in EBITDA margin, which rose to 2.02% in FY25 from 1.75% in FY24.

Rating Sensitivities

Movement in operating income and profitability margins
Working capital cycle
Larger than expected debt funded capex

Liquidity Position

Adequate

The firm’s liquidity position is adequate marked by net cash accruals of Rs. 9.28 Cr. in FY 2025 as against long-term debt obligation of Rs. 1.64 Cr. over the same period. The firm has also made a prepayment of a part of debt in FY25. The current ratio stood comfortable at 2.07 times as on March 31, 2025, as against 1.62 times as on March 31, 2024. Further, the average maximum bank limit utilization of fund-based for last six months ended July 2025 was 57%. The cash and bank balance of the firm stood at Rs.0.41 Cr. as on March 31, 2025. The management also has flexibility to infuse funds in the business as and when required. The firm have expansion plans of around Rs. 15.00 Cr. into edible segment of seeds that is expected to enhance the scale of operations both in terms of revenue and profitability by FY27. The working capital cycle was efficient as reflected from GCA days of 19 days in FY2025 as against 21 days in FY2024. Acuite believes that going forward the firm will maintain adequate liquidity position due to sufficient accruals against debt repayment, moderate current ratio, and moderate reliance on bank limit for funding working capital requirements.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	765.44	872.93
PAT	Rs. Cr.	4.73	6.18
PAT Margin	(%)	0.62	0.71
Total Debt/Tangible Net Worth	Times	0.29	1.57
PBDIT/Interest	Times	4.12	3.74

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

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
03 Jul 2024	Cash Credit	Long Term	50.00	ACUITE BB+ \| Stable (Assigned)
	Term Loan	Long Term	13.36	ACUITE BB+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	1.64	ACUITE BB+ \| Stable (Assigned)

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.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BB+ \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.28	Simple	Not Applicable\|Withdrawn
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	07 Dec 2031	8.72	Simple	ACUITE BB+ \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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.

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