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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 182.68 | ACUITE A | Stable | Reaffirmed | - |
| Bank Loan Ratings | 83.00 | - | ACUITE A1 | Reaffirmed |
| Total Outstanding | 265.68 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has reaffirmed the long-term rating of ‘ACUITE A’ (read as ACUITE A) and the short-term rating of 'ACUITE A1' (read as ACUITE A one) on the Rs.265.68 Cr. bank facilities of AIC Iron Industries Private Limited (AIIPL). The outlook is 'Stable'.
Rationale for reaffirmation: The rating reaffirmation reflects the continued improvement in the overall business risk profile of the company marked by increase in the operating income and profitability driven by fully integrated operations. The rating also factors in its experienced management, efficient working capital operations and the healthy financial risk profile of the group characterized by healthy net worth and steady debt coverage indicators. However, the rating remains constrained by its cyclical nature of the steel industry and the susceptibility of profitability to volatility in raw material prices. |
| About Company |
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AIC Iron Industries Private Limited (AIIPL) was incorporated in December 2003. Current directors of the company are Mr. Gyan Adukia, Mr. Sheo Pujan Singh, Mr. Dinesh Adukia, Mr. Vivek Adukia. In February 2008, the company was taken over by Adukia group of West Bengal. The company is presently engaged in manufacturing sponge iron, Billets and MS Strips/pipes with installed capacity of 1,50,000 MTPA, 2,37,000 MTPA and 2,25,000 MTPA respectively. Its manufacturing facility is located at Purulia (West Bengal).
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| About the Group |
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Incorporated in 2003, Raic Integrated Sponge And Power Private Limited (RISPPL) manufactures sponge iron, billets, TMT steel and silico manganese at its facility in Burdwan district, West Bengal. Unit has installed capacity of 2,25,000 tons per annum (MTPA) of sponge iron, 2,25,000 MTPA of billets, 2,00,000 MTPA of TMT steel, 12,250.00 MTPA of silico manganese and captive power plant with a capacity of 18.5 MW.
Incorporated in 2004, N. N. Ispat Private Limited (NNIPL) manufactures billets and thermo- mechanically treated (TMT) steel. The manufacturing facility is located in Burdwan district of West Bengal with installed capacity of 2,50,000 MTPA of billets and 2,36,000 MTPA of TMT. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has consolidated the financial and business risk profile of N N Ispat Private Limited (NNIPL), AIC Iron Industries Private Limited (AIIPL) and Raic Integrated Sponge And Power Private Limited (RISPPL). The consolidation is on account of the common management, same line of operations and significant operational and financial fungibility.
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| Key Rating Drivers |
| Strengths |
| Long operational track record and experienced management
The promoters of the AIC group, the Adukia family of West Bengal, have more than two decades of experience in the iron and steel industry. The extensive experience of the promoters has helped them understand market dynamics and establish strong relationships with their customers and suppliers. The overall affairs of the AIC group are being managed by Mr. Dinesh Adukia and his brothers. The promoters are resourceful and have also supported the group companies by infusing unsecured loans as and when required to support the business operations. Acuité believes that the long-track record of operations will benefit the company going forward, resulting in steady growth in the scale of operations.
Steady growth in revenues and profitability The operating income of the group improved and stood at Rs.2678.72 Cr (Est) with YOY growth of 18.64 percent in FY2025(Est) as against Rs.2257.91 Cr in FY2024. The group generates its revenues from manufacturing of sponge iron, billet, silico manganese, TMT and other rolled steel products. The growth in operating income attributed to increase in capacity utilisation across all its product segments. The group has shown improvement in the EBIDTA margin in FY2025(Est.) which stood at 8.41 percent in FY2025(est) as against 7.82 percent in FY2024, 6.09 percent in FY2023. The improvement in the EBIDTA margin is on account of improvement is driven by fully integrated operation and decline in the raw material cost and power cost and savings in transportation costs. The calibrated capex of Rs. 100 Cr which has been undertaken by the group in FY2025, funded through internal accruals and debt. Total capex will be capitilized by FY2026. Acuite believes, the group’s operating performance would improve steadily over the medium term backed by completed capex and augmentation in the volumes. Healthy financial risk profile The Group’s financial risk profile remained healthy marked by healthy net worth, steady gearing and moderate debt protection metrics. The net worth of the company stood at Rs.377.09 Cr. as on March 31, 2024 against Rs.297.94 Cr. as on March 31, 2023, and Rs.523.96 Cr. as on March 31, 2025(Est). The net worth is improved due to due to accretion of net profit in the reserve and Acuité has considered unsecured loans of Rs.111.00 Cr as on March 31, 2025(Estimated) as quasi equity. The gearing of the group stood at 1.64 times as on March 31, 2024, against 1.56 times as on March 31, 2023. The estimated gearing for FY2025 is around 1.27 t imes. Debt protection metrics – Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood at 3.78 times and 1.79 times as on March 31, 2024, respectively as against 3.93 times and 1.79 times as on March 31, 2023, respectively. The estimated ICR and DSCR for FY2025 is around 3.69 times and 1.81 times. Tol/ TNW stood at 2.27 times as on March 31, 2024, as against 2.22 times as on March 31, 2024. The estimated TOL/TNW for FY2025 is around 1.99 times. The debt to EBITDA of the group in stood at 3.34 times as on March 31, 2024, as against 3.39 times as on March 31, 2023 and estimated to be around 2.90 times as on March 31st 2025. Acuité believes the financial risk profile would remain healthy over the medium term on account of the group's healthy capital structure and stable operations. Efficient Working capital operations Group’s working capital operations remained efficient marked by Gross Current Asset (GCA) of 118 days in FY2025 (Est.) as against 95 days in FY2024. The reason for moderation in GCA days in FY2025 is on account of high other current assets. The Inventory days stood at 68 day in FY2025 (Est.), as against 61 days in FY 2024. The reason for the increase in the inventory days is due to group need to maintain raw material inventory (iron ore coal stock) for uninterrupted production and to mitigate the raw material price fluctuations risk. The debtor day stood at 33 days in FY2025 (Est.) as against 28 days in F2024. Further, the average bank utilization limit in the last six months ended August 24 remained at ~78 percent for fund based. Acuite believes the working capital requirement is likely to remain at similar levels over in the medium term due to the nature of business. |
| Weaknesses |
| Susceptibility of profitability to volatility in raw material prices in an intensely competitive and cyclical steel industry |
| ESG Factors Relevant for Rating |
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The group has undertaken several initiatives to improve its environmental footprint, including the installation of captive power plants and waste heat recovery systems, which enhance energy efficiency and reduce dependence on grid power. Air pollution control mechanisms and water conservation measures have also been implemented across manufacturing units. On the social front, the group provides direct employment to over 1,000 individuals, contributing to regional economic development in West Bengal and Chhattisgarh. It has instituted safety protocols and conducts regular training programs to ensure workplace safety. Community engagement activities, such as support for local infrastructure and education, are also undertaken. While the group is gradually enhancing its focus on diversity and inclusion, formal policies in this area are still evolving. Further on the governance front, the group entities are privately held and managed by a common promoter family, with a centralized governance structure that facilitates strategic alignment. Internal audit systems and statutory compliance mechanisms are in place. The group is also in the process of strengthening its ESG reporting practices, with plans to align with recognized frameworks such as BRSR Core and GRI over the medium term.
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| Rating Sensitivities |
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| Liquidity Position: Strong |
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Group’s liquidity is Strong with strong net cash accruals (NCA) to its repayment obligations. It is estimated that group has generated cash accruals of Rs. 145.99 Cr in FY2025(Estimates) as against its long-term debt obligations of Rs. 52.42 Cr for the same period. Going forward, the group is expected to generate adequate net cash accruals against maturing repayment obligations. However, the reliance on working capital limits stood moderate marked by average 78 percent utilization of the fund-based limits used over the past six months ending in August 2025. The group has maintained unencumbered cash and bank balances Rs.0.78 Cr. and the current ratio stood at 1.19 times as on March 31, 2024. Estimated current ratio stood at 1.18 times as on March 31st, 2025. Acuité expects that the liquidity of the group is likely to remain strong over the medium term on account of expected healthy cash accruals to its maturing debt obligations.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 2257.91 | 2195.20 |
| PAT | Rs. Cr. | 73.48 | 53.31 |
| PAT Margin | (%) | 3.25 | 2.43 |
| Total Debt/Tangible Net Worth | Times | 1.64 | 1.56 |
| PBDIT/Interest | Times | 3.78 | 3.93 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable |
| Any Other Information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
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