Press Release

Press Release

December 24, 2025

CHAUDHARY TIMBER INDUSTRIES PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	0.25	ACUITE A- \| Stable \| Reaffirmed	-
Bank Loan Ratings	26.00	-	ACUITE A2+ \| Assigned
Bank Loan Ratings	101.75	-	ACUITE A2+ \| Reaffirmed
Total Outstanding	128.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed its long term rating of 'ACUITE A-' (read as ACUITE A minus) and short term rating of 'ACUITE A2+' (read as ACUITE A two plus) on the Rs.102.00 Cr. bank facilities of Chaudhary Timber Industries Private Limited (CTIPL). The outlook is 'Stable'.
Acuite has also assigned short term rating of 'ACUITE A2+' (read as ACUITE A two plus) on the Rs.26.00 Cr. bank facilities of Chaudhary Timber Industries Private Limited (CTIPL).

Rationale for Rating
The rating factors in the increase in operating income of the company, which stood at Rs.405.77 Cr. in FY2025 as against Rs.375.98 Cr. in FY2024 contributed by the increase in sales realization in FY2025 as compared to the previous year. Moreover, the company has registered revenue of Rs.222.02 Crore till H1 FY2026. Further, the rating draws comfort from the comfortable financial risk profile of the company marked by gearing ratio at 0.35 times as on 31st March 2025, interest coverage ratio and debt service coverage ratio, which stood at 7.83 times and 6.15 times respectively as on 31st March 2025. Further, the liquidity profile of the company is adequate supported by sufficient accruals against nil debt repayment obligations. However, the aforementioned strengths are partly offset by the margins being susceptible to fluctuations in raw material prices as reflected by EBITDA margin of 5.49% in FY2025 as against 6.66% in FY2024 and PAT margin of 4.96% in FY2025 as against 5.36% in FY2024 and going forward, the same will remain a key rating sensitivity. In addition, working capital operations are moderately intensive marked by GCA days of 149 days as on 31st March, 2025 owing to the nature of operations. Acuite notes that the rating remains constrained by the supplier concentration risk and the presence of a highly competitive and fragmented nature of the industry.

About the Company

Chaudhary Timber Industries Private Limited (CTIPL) was incorporated in 2007 and is engaged in the processing and trading of pinewood. The company was initially established as a family-oriented business, as Chaudhary Timber Traders at Nangloi Delhi, by Late Sh. Baldev Raj Nijhawan. The business, when set up, was at its nascent stage of operation, during which very few timber organizations were being operated. The company imports pinewood from New Zealand, Germany, Canada, Russia, Australia, etc. and processes it at various sizes and shapes as per the customer’s requirement. The same is then distributed through 3000 to 4000 dealer networks across India. The company is managed by Mr. Vishal Nijhawan and Mr. Sunil Nijhawan.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of Chaudhary Timber Industries Private Limited (CTIPL) to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations with experienced promoters
CTIPL was incorporated in 2007 and its promoters have more than two decades of existence in the industry. The company was initially set up as a family-oriented business and is a pioneer in timber processing. The company imports pinewood from New Zealand, Germany, Canada, Russia, Australia, etc. and processes it at various sizes and shapes as per the customer’s requirements. The same is then distributed through 3000 to 4000 dealer networks across India. Further, the company is managed by Mr. Vishal Nijhawan and Mr. Sunil Nijhawan who have benefitted the company to have established relationship with customers and suppliers. Acuite believes that the company will continue to derive benefit from its established track record and experienced management’s strong understanding of market dynamics.

Comfortable Financial Risk Profile
The financial risk profile of the company is comfortable, marked by a net worth of Rs.202.74 Crore as on 31st March 2025 as against Rs.182.63 Crore as on 31st March 2024. The increase in the net worth is on an account of accretion of profits into reserves. The capital structure of the company is marked by gearing ratio which stood at 0.35 times as on 31st March 2025 as against 0.47 times as on 31st March 2024. Further, the coverage indicators are reflected by the interest coverage ratio and debt service coverage ratio, which stood at 7.83 times and 6.15 times respectively as on 31st March 2025 as against 6.47 times and 5.12 times respectively as on 31st March 2024. The TOL/TNW ratio of the company stood at 0.39 times as on 31st March 2025 as against 0.51 times as on 31st March 2024 and Debt-EBITDA stood at 2.16 times as on 31st March 2025 as against 2.59 times as on 31st March 2024. Acuité expects the financial risk profile of the company to remain comfortable with no debt-funded capex plans in the near to medium term.

Increase in operating income albeit decrease in margins
The company reported operating revenue of Rs.405.77 Cr in FY2025 as against Rs.375.98 Cr in FY2024. The revenue front of the company is domestic-based and the majority of the revenue is from sawn timber, which is the main product of the company. The increase in revenue in FY2025 is majorly contributed by increase in sales realization of the same by 13.43% as compared to the previous year. Moreover, the company has booked revenue of Rs.222.02 Crore till H1 FY2026. Despite the increase in revenue, the company witnessed moderation in the operating margin which stood at 5.49% in FY2025 as against 6.66% in FY2024 on account of increase in raw material procurement prices and employee costs in FY2025 as compared to FY2024. Likewise, the PAT margin stood at 4.96% in FY2025 as against 5.36% in FY2024. Going forward, the company expects to have a stable top-line and margins in the near to medium term. However, the ability of the company to sustain its operating and profitability margins while scaling up operations will remain a key rating sensitivity.

Weaknesses

Moderately Intensive Working Capital Operations
The working capital operations of the company remained moderately intensive marked by GCA days at 149 days as on 31st March 2025 as against 153 days as on 31st March 2024. The inventory holding stood at 39 days as on 31st March 2025 as against 38 days as on 31st March 2024 as the company needs to maintain adequate inventory as and when required for order execution. Further, the debtor days of the company stood at 99 days as on 31st March 2025 as against 101 days as on 31st March 2024 and the creditor days stood at 4 days as on 31st March 2025 and 31st March 2024. Acuité expects the working capital operations of the company to remain at similar levels in the near to medium term owing to the nature of operations.

Competitive and fragmented nature of business
The company is engaged in processing timber in various sizes and shapes. The industry is competitive and fragmented in nature marked by the presence of several medium to big-sized players. The high competition puts pressure on the margins, thereby reducing bargaining power with customers for players. Further, the purchase front of the company is import-based, having around 90 percent of purchases from New Zealand, Germany, Canada, Russia, Australia, etc. The major raw material used is timber logs, whose prices are fluctuating and have a direct impact on operating margins of the company. Acuité believes that the ability of the company to pass on such an adverse impact to its customers remains a key sensitivity factor.

Rating Sensitivities

Movement in the profitability margins and topline.
Working Capital Cycle

Liquidity Position

Adequate

The company has adequate liquidity marked by net cash accruals of Rs.21.43 crore for FY2025 against nil debt obligations. The cash and bank balances of the company stood at Rs.0.22 crores as on 31st March 2025 and unencumbered bank deposits of Rs.88.69 crore on 31st March 2025. The current ratio stood at 3.33 times as on 31 March 2025 as against 2.64 times as on 31 March 2024. Further, the fund and non fund based bank limits of the company stood utilized at 34.58% and 66.90% in the last six months ended October, 2025. Acuite believes that the liquidity profile of the company is likely to remain adequate supported by healthy cash accruals in the near to medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	405.77	375.98
PAT	Rs. Cr.	20.11	20.15
PAT Margin	(%)	4.96	5.36
Total Debt/Tangible Net Worth	Times	0.35	0.47
PBDIT/Interest	Times	7.83	6.47

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
10 Oct 2024	Cash Credit	Long Term	0.25	ACUITE A- \| Stable (Reaffirmed)
10 Oct 2024	Letter of Credit	Short Term	101.75	ACUITE A2+ (Reaffirmed)
13 Jul 2023	Cash Credit	Long Term	0.25	ACUITE A- \| Negative (Reaffirmed)
13 Jul 2023	Letter of Credit	Short Term	101.75	ACUITE A2+ (Reaffirmed)
15 Jun 2022	Cash Credit	Long Term	0.25	ACUITE A- \| Stable (Assigned)
	Letter of Credit	Short Term	49.75	ACUITE A2+ (Assigned)
	Letter of Credit	Short Term	52.00	ACUITE A2+ (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
BANK OF INDIA (BOI)	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.25	Simple	ACUITE A- \| Stable \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	101.75	Simple	ACUITE A2+ \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	26.00	Simple	ACUITE A2+ \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
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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