Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 30.30 ACUITE BBB- | Stable | Upgraded - RBI
Bank Loan Ratings 0.00 0.20 - ACUITE A3 | Upgraded RBI
Total Outstanding 0.00 30.50 - - -
Total Withdrawn 0.00 0.00 - - -
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
 
Rating Rationale

­Acuite has upgraded the long-term rating to 'ACUITE BBB-' (read as ACUITE Triple B minus) from ‘ACUITE B-’ (read as ACUITE B minus) and the short-term rating to ‘ACUITE A3’ (read as ACUITE A Three) from ‘ACUITE A4’ (read as ACUITE A Four) on Rs 30.50 Cr. bank facility of Venus Industrial Corporation Private Limited. The outlook is 'Stable'.

Acuite has received latest information from the issuer along with latest No Default Statement, leading to transition from Issuer Not Co-operating to Co-operative issuer.

Rationale for upgrade
The upgrade is driven by sustainable growth in operating revenue and margins, supported by increase in net cash accruals. The rating considers the financial risk profile of the company which is marked by improving net worth, moderate gearing and comfortable debt protection metrices supported by positive net cash accruals, efficient working capital cycle and with utilisation of bank limit at around 70% over the last twelve months ended February 2026. The rating also considers the healthy relatiosnhip with marquee clients and suppliers and benefits derived from the experience of the promoters. However, the rating remains constrained by the company’s exposure to volatility in steel components prices, which continue to influence its overall credit profile. Acuité believes that going ahead VICPL will be able to sustain growth in revenues over the medium term.

About the Company
­­Venus Industrial Corporation Private Limited (VICPL), incorporated in 1996, is engaged in the manufacturing of precision sheet metal components, primarily, to the automotive industry. The company manufactures door hinges, handle of hand brakes, clutch parts and other fabricated and stamped components for original equipment manufacturers (OEMs). The four manufacturing facilities are located at Faridabad (Haryana) with a total installed capacity of 47400 TPA. VICPL is managed by Mr. Dwarka Nath Kathuria, Mr. Krishan Lal Kathuria, Mr. Mukesh Kathuria and Mr. Sumeet Kathuria.
 
Unsupported Rating

­Not Applicable.
 
Analytical Approach

Acuité has taken standalone business and financial risk profile of Venus Industrial Corporation Private Limited (VICPL) to arrive at the rating. 
 
Key Rating Drivers

Strengths

Experienced promoters and established track record 
VICPL is managed by Mr. Dwarka Nath Kathuria, Mr. Krishan Lal Kathuria, Mr. Mukesh Kathuria and Mr. Sumeet Kathuria. who are the Directors of the company. The management of the company has more than four decades of experience in the automobile product manufacturing business and industry, which has helped them to develop strong understanding of market dynamics and establish healthy relationship with various suppliers and customers. Acuite believes that the company is going to benefit from the extensive experience of promoters over the medium term.

­Steady scale of operations
VICPL witnessed an increase in its operating income to Rs. 452.63 crore in FY2025 from Rs. 410.56 crore in FY2024, primarily driven by higher sales volumes of motor vehicle parts and scrap sales. The business remains demand-driven, supported by long-standing relationships of over two decades with its major customers. Further, till February 2026, the company achieved a turnover of around Rs. 445.66 crore. The company’s operating profitability has been increasing due to better absorption of fixed costs and the ability to pass on any major price escalation to its customers, although the contractual labours deployed from time to time also leads to volatility in margins. Acuite believes that the company is expected to maintain a steady growth in its operating performance over the medium term. 

Moderate financial risk profile 
The financial risk profile of the company is marked by improving net worth of Rs. 37.55 Cr. as on March 31, 2025 as compared to Rs. 21.04 Cr. as on March 31, 2024. The net worth includes unsecured loans from promoters, which are subordinated to bank facilities and will remain in business. The gearing of the company stood at 1.46 times as on March 31, 2025 and 1.80 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 4.41 times as on March 31, 2025 as compared to 7.29 times as on March 31, 2024. The interest coverage ratio stood at 4.56 times in FY2025 which has improved from 2.54 times in FY2024. The Debt Service Coverage Ratio (DSCR) stood at 1.90  times in  FY2025. Acuite believes that the company’s financial risk profile would remain moderate with sustained leverage ratio and comfortable debt protection metrices over the medium term.

Efficient Working Capital Cycle
The company’s efficient working capital management is reflected in its gross current assets (GCA) of 76 days as on March 31, 2025, the credit period in line with the industry standards with receivables of 33 days. Further, to meet its business requirement, the company holds inventory days of the company of 33 days as on March 31, 2025. Against this, the company has creditor day of 94 days as on March 25. Acuite believes that that the working capital cycle of the company would continue to remain efficient over the medium term.


Weaknesses

Concentration in customer base with established relationships
The company derives almost 60% of its revenues from Maruti Suzuki India Limited, Suzuki Motor Gujarat Private Limited and FCC Clutch India Private Limited in the automobiles segments. While long-standing relationships with reputed clients support repeat orders and revenue visibility, exposure remains towards customer concentration, which could impact business performance in case of reduced offtake or changes in customer dynamics and will remain a monitorable.

Exposure to volatility in raw material prices
VICPL is exposed to fluctuations in the prices of key raw materials, particularly sheet metal components, which constitute a major portion of its cost structure. The company operates in a pass-through pricing environment, where sharp declines in raw material prices can lead to lower realizations, while sudden increases can compress margins if not passed on immediately. Acuite believes that this inherent volatility in raw material pricing limits margin stability and adds uncertainty to earnings.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • Growth in revenues of more than Rs. 550 Cr with sustained EBDITA margin of above 6 per cent.
  • Improvement of current ratio to more than 1.5 times
Potential triggers (individual or collective) for a downward rating action:
  • Larger than expected debt funded capex plan
  • Elongation of GCA for more than 100 days
Liquidity Position
Adequate

­The company has Adequate liquidity marked by net cash accruals of Rs. 22.84 Cr. in FY2025 as against Rs. 8.19 Cr. debt obligations over the same period. The current ratio of the company stood low at 0.68 times as on March 31, 2025. Additionally, the company manitains cash and bank balance of Rs. 0.10 Cr. as on March 31, 2025 and has 70% utilization of its sanctioned bank limit (Fund based) over the last twelve months ending February 2026. The company does not have any major debt funded capex plans. Acuité believes that the company’s liquidity profile is expected to remain adequate over the medium term backed by steady accruals, absence of det funded capex plans albeit low current ratio and moderate dependence on bank lines to fund the same.
 
Outlook

­Stable
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 452.63 410.56
PAT Rs. Cr. 16.51 5.49
PAT Margin (%) 3.65 1.34
Total Debt/Tangible Net Worth Times 1.46 1.80
PBDIT/Interest Times 4.56 2.54
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
08 Dec 2025 Letter of Credit Short Term 0.85 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Short Term Bank Facility Short Term 0.27 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B- (Downgraded & Issuer not co-operating* from ACUITE B)
Term Loan Long Term 3.88 ACUITE B- (Downgraded & Issuer not co-operating* from ACUITE B)
Proposed Long Term Bank Facility Long Term 13.50 ACUITE B- (Downgraded & Issuer not co-operating* from ACUITE B)
11 Sep 2024 Letter of Credit Short Term 0.85 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Short Term Bank Facility Short Term 0.27 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
Term Loan Long Term 3.88 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
Proposed Long Term Bank Facility Long Term 13.50 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
14 Jun 2023 Letter of Credit Short Term 0.85 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Short Term Bank Facility Short Term 0.27 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 12.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Term Loan Long Term 3.88 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 13.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
H D F C Bank Limited Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.60 Simple ACUITE BBB- | Stable | Upgraded ( from ACUITE B- )
H D F C Bank Limited Not avl. / Not appl. Dropline Overdraft Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE BBB- | Stable | Upgraded ( from ACUITE B- )
Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.20 Simple ACUITE A3 | Upgraded ( from ACUITE A4 )
H D F C Bank Limited Not avl. / Not appl. Term Loan Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. 31 Jul 2026 0.70 Simple ACUITE BBB- | Stable | Upgraded ( from ACUITE B- )
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
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