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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 240.00 | ACUITE BBB | Stable | Upgraded | - |
| Bank Loan Ratings | 10.00 | - | ACUITE A3+ | Upgraded |
| Total Outstanding | 250.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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ACUITE has upgraded its long-term rating to 'ACUITE BBB' (read as ACUITE triple B) from 'ACUITE BBB-' (read as ACUITE triple B minus) and short-term rating to 'ACUITE A3+' (read as ACUITE A three plus) from 'ACUITE A3' (read as ACUITE A three) on the Rs 250.00 crore bank facilities of APPL Industries Limited (AIL). The outlook is ‘Stable’.
Rationale for rating The upgrade in rating is based on the improvement in the company's revenue, which grew by approximately 26.70 per cent to Rs. 788.45 Cr. in FY2025 (prov.) from Rs. 622.29 Cr. in FY2024. The improvement in revenue is due to increase in the volume sales. The operating margin of the company shows stability and stood at 7.38 per cent in FY25 (prov.) against 7.41 per cent in FY24. The rating also considers the company's adequate liquidity position, which is reflected in its sufficient net cash accruals, moderate current ratio and moderate financial risk profile. Additional positive factors include the established track record of operations of more than two decades with experienced management which is also reflected from its growing revenue trend and well-established position on the market of thermoplastic compounding sector. Further, the rating factors in that AIL supplies to the automotive Tier -1 supplier who then caters to the requirements of major OEMs. However, the above mentioned strengths are partly offset by intensive working capital operations. Further, the margins are susceptible to volatility in the raw material prices as well the competitive nature of industry. |
| About the Company |
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Incorporated in 2001, APPL Industries Limited (AIL) is a Delhi-based company engaged in engineering thermoplastics based on commodity resins and engineering plastics based on advanced plastic resins. The combination of different resins with filler and reinforcement results in different properties and a wide variety of compounds. Its major application areas are the automotive industry, home appliances, packaging and petrochemicals. The company is managed by Ms. Asha Jain, Mr. Aalekh Inder Jain, Mr. Rajeev Shyamrao Basargekar, Mr. Anurag Inder Jain, Mr. Inder Jain and Mr. Shashikant as directors.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Acuité has considered the standalone business and financial risk profile of APPL INDUSTRIES LIMITED to arrive at this rating.
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| Key Rating Drivers |
| Strengths |
| Experienced Promoters with long track record of operations
APPL was incorporated in 2001. The company is engaged into the manufacturing of engineered thermoplastics based on commodity resins and engineering plastics based on advanced plastic resins. The combination of different resins with filler and reinforcement results in different properties and a wide variety of compounds. AIL is currently promoted by Mr. Inder Jain, who has an experience of more than three decade in the same line of business. The established track record has helped the company to maintain a longstanding relationship with reputed clientele like Varroc Polymers Private Limited, Lumax Auto Technologies Limited, Varroc Engineering Limited etc. Further, these customers are the tier-1 suppliers to major OEMs. Acuite believes that AIL will continue to derive benefit from its established track record and longstanding relationship with reputed clientele. Improvement in scale of operations The company has witnessed the growth in the revenue from operations by ~26.70% which stood at Rs.788.45 Cr. in FY25 (prov.) against Rs.622.29 Cr. in FY24. The improvement in revenue is due to increase in the volume sales. In addition, the EBITDA Margins of the company shows stability and stood at 7.38% in FY25 (prov.) against 7.41% in FY24. However, the PAT Margins of the company stood at 2.89% in FY25 (prov.) against 2.73% in FY24. Further, the company has achieved revenue of Rs.494.94 Crores from April 2025 to August 2025. Acuité believes that the company is expected to have better top-line in near to medium term supported by stable margins as compared to previous years. Moderate Financial Risk Profile The financial risk profile of the company is moderate marked by net-worth of Rs.181.69 Crores in FY25 (prov.) against Rs.158.92 Crores in FY24. The total debt of the company stood at Rs.205.59 Crores in FY25 (prov.) which consists of long term debt of Rs.62.69 Crores. Further, the debt-equity ratio of the company stood at 1.13 times in FY25 (prov.) against 0.93 times in FY24. Further, the interest coverage ratio of the company stood at 2.88 times in FY25 (prov.) against 2.62 times in FY24. The DSCR of the company stood at 1.34 times in FY25 (prov.) against 1.12 times in FY24 and TOL/TNW ratio stood at 1.79 times in FY25 (prov.) against 1.67 times in FY24. Acuité believes that the financial risk profile of the company may improve over the medium term on account of expected improvement in operating performance and repayment of long term debt with no major debt funded capex. |
| Weaknesses |
| Intensive Working capital operations
The working capital operations of the company is intensive marked by gross current assets (GCA) days of 114 days in FY25 (prov.) against 112 days in FY24. There is a stability in the GCA days due to the inventory days of the company which stood at 29 days in FY25 (prov.) against 34 days in FY24. However, debtors days of the company stood at 82 days in FY25 (prov.) against 81 days in FY24. Further the creditors days stood at 37 days in FY25 (prov.) against 48 days in FY24. Acuité believes that going forward the working capital operations of the company will remain intensive due to nature of the business. Susceptibility of the profitability to volatility in the raw material prices The profitability margins of the company remain susceptible to volatility in the raw material prices (raw materials being petroleum derivatives), the prices of which are highly volatile in nature. Any adverse fluctuation in raw material price may impact the profitability of the company. In addition, the automotive sector is quite cyclical, and vehicle OEM sales and the sales of automotive component suppliers are mutually exclusive. The auto-ancillary market is also quite competitive due to the abundance of participants in both the organised and unorganised sectors. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The liquidity profile of the company is adequate. The company has generated net cash accruals of Rs.32.21 Crores in FY25 (prov.) against the debt obligation of Rs. 18.59 Crores. In addition, the current ratio of the company stood at 1.26 times. The average bank limit utilisation of fund based and non-fund based facilities stood at 86.82% in last 10 months ending August 2025. Acuite believes that liquidity profile of the company is expected to improve in near to medium term.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 788.45 | 622.29 |
| PAT | Rs. Cr. | 22.78 | 16.96 |
| PAT Margin | (%) | 2.89 | 2.73 |
| Total Debt/Tangible Net Worth | Times | 1.13 | 0.93 |
| PBDIT/Interest | Times | 2.88 | 2.62 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| Any other information |
| None |
| Applicable Criteria |
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• 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 |
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