Acuité has taken a consolidated view of Omax Minerals Private Limited (Omax), Vedanta Washery and Logistic Solutions Private Limited (Vedanta), RKTC Infratech Limited (Erst. R K Transport and Constructions Limited) and Cosmos Iron and Power Private Limited as all the 4 companies are in the similar line of business, share common management and have strong operational and financial linkages. The group herein is referred to as RKTC Group.

Stable Business Risk Profile albeit decline in margin
The group has achieved a revenue of Rs. 952.72 Cr. in FY25(Prov.) as against Rs. 955.94 C.r in FY24 due to decline in revenue from coal transportation and sand sales. The EBITDA margins of the group stood at 16.36% in FY25(Prov.) as compared to 18.30% in FY24. The decrease in the margins has been noticed because of the change in nature of conducting business in RKTC Infratech Limited where it began to procure coal directly on account of customer requests, which involved different cost structures observing lower profitability in terms of overall EBITDA margins and also the increased transportation costs and outsourcing of jobs by OMAX, as company does not own commercial vehicles and has to outsource transportation, which increases costs and reduces margins. The PAT margins of the group stood at 5.47% in FY25(Prov.) as compared to 5.17% in FY24. The increase in PAT was noticed because the decrease in interest costs stemming from the repayment of debt and low utilization of bank limits. The group has achieved a topline of Rs. 201.29 Cr. till June 2025. Going forward, the group is likely to improve slightly in medium term on account of the increased reach of the diversified business and increase in topline from washery business.
Moderate Financial Risk Profile
The financial risk profile of the group is moderate marked by healthy adjusted net-worth of Rs. 496.21 Cr. as on 31st March 2025(Prov.) against Rs. 444.54 Cr. as on 31st March 2024. The increase has been noticed on account of accretion of the profits to the reserves. Net worth also contains quasi equity to the tune of Rs. 80 Cr. which is expected to remain in the business over a long term. The total debt of the group is Rs. 240.04 Cr. as on 31st March 2025(Prov.) against Rs. 354.96 Cr. as on 31st March 2024. The group has repaid the debts using any surplus generated from the business over and above the existing debt obligations. Further, the group has also decreased the overall utilization of the bank lines leading to decrease in the total debt. The gearing stands low at 0.48 times in FY25(Prov.) against 0.80 times in FY24. The low gearing is characterised by repayment of the debt of the group. Further, the interest coverage ratio of the group stood comfortable at 4.14 times in FY25(Prov.) as against 3.49 times in FY24. The debt service coverage ratio stood at 1.31 times in FY25(Prov.) against 1.49 times in FY24. The financial risk profile of the group is likely to stay on the same lines in the medium term on account of no debt funded CAPEX plans in the near future.
Integrated nature of business in allied activities
The Group has a diversified revenue stream. Over the past few years, the group has steadily diversified into coal handling and transportation, construction, EPC, logistics, coal washery, sand mining and coal trading. The overall business risk profile has improved over the year thereby reducing concentration to any one business segment. In FY26, the coal washery and siding business is expected to further increase their exposure in the integrated nature of business.
Experienced Promoters with long track record of operations
RKTC Group is a family-owned business engaged in the logistics and construction business since 1992. The promoters cum directors Mr. Amar Agrawal and Mr. Sushil Kumar Singhal have more than two decades of experience in the business.  Their long-standing presence in the coal transportation business ensures repeat orders, and their track record in the timely execution of contracts also enables them to win repeat orders from their client base, thereby mitigating operational risk to a large extent.

Intensive Working Capital Profile
The working capital operations of the group remained intensive marked by GCA days which stood at 180 days as on 31st March 2025(Prov.) as against 216 days as on 31st March 2024. The decrease is noticed majorly because of the improvement in the debtor collection period. The inventory days of the group stood at 42 days as on 31st March 2025(Prov.) same as 42 days as on 31st March 2024. The debtor days of the group stood at 72 days as on 31st March 2025(Prov.) same as 84 days as on 31st March 2024. The decrease has been noticed because of change in payment cycles of few lines of business like the coal trading and transportation customers. On the other hand, the creditor days of the group stood at 36 days as on 31st March 2025(Prov.) as against 60 days as on 31st March 2024. Acuité believes that the group is likely to continue having intensive working capital requirements in the medium term on account of the nature of business.
Competitive and regulated industry
Coal being a commodity has demonstrated significant volatility in its prices in the past and imported coal prices are also governed by global demand-supply factors. Moreover, the coal trading and transport industry is highly fragmented, with a large number of players, due to the low entry barriers. Further, the industry is highly regulated, with the ministry of coal governing its operations in the country. Any adverse regulations shall impact the operations and margins of the company.