| Long operational track record and extensive experience of the promoters
BNFPL, promoted by Mr. Bobby and Mrs. Shiny Bobby, has more than a decade’s experience in the spices & oleoresins industry. The company was incorporated in 2001 and gradually expanded to the present total capacity of 3,000 metric tons per annum (MTPA) for spice oils and 5,000 MTPA for spice oleoresins at its plants situated in Kerala. BNFPL has competent management supported by a team of well qualified and experienced second line personnel. The promoter's experience in the spices and oleoresins industry has helped the company to forge healthy relationships with its suppliers and customers, to ensure a steady raw material supply and large offtake. The company has trade liaisons with customers in countries such as Vietnam, Sri Lanka, Morocco, Guatemala, etc. Exports generally account for around 70 percent of the total sales and the company exports to Europe, Russia, Middle East countries, Brazil & South Africa. Acuité believes that the promoter's extensive industry experience and established relationship with its customers and suppliers will aid BNFPL's business risk profile over the medium term.
Moderation in operating performance, however expected marginal growth
The company has reported revenue of Rs. 199.19 Cr. in FY2025 as against Rs.110.73 Cr. in FY2024. This growth was driven by higher production volumes of its key product, chilli, supported by strong market demand. The EBITDA margins of the company however declined and stood at 7.91 percent in FY2025 as compared to 12.95 percent in FY2024 and 16.75 percent in FY2023. In FY 2026 (Est.), the company has reported moderation in revenue which stood at Rs.197.39 Cr. with an estimated EBITDA margin of ~8 percent, margins were moderated mainly by an increased share of low-grade chilli orders, leading to margin pressure despite stable revenues. Acuite believes that , the operating income and profitability of the company will improve in the near to medium term steadily due to stable demand.
Healthy financial risk profile
The company’s financial risk profile remained healthy marked by a moderate net worth, low gearing and healthy debt protection metrics. The net worth of the company stood at Rs.76.64 Cr. and Rs.66.58 Cr. as on March 31, 2025, and 2024 respectively. The improvement in net worth is due to the accretion of reserves. Gearing (debt to equity) of the company stood at 0.20 times as on March 31, 2025, against 0.12 times as on March 31, 2024. Debt protection metrics – Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood healthy at 12.52 times and 5.00 times as on March 31, 2025, respectively as against 6.33 times and 2.73 times as on March 31, 2024, respectively. TOL/TNW (Total outside liabilities/Total net worth) stood at 0.37 times and 0.25 times as on March 31, 2025, and 2024 respectively. The debt to EBITDA of the company stood at 0.97 times as on March 31, 2025, as against 0.57 times as on March 31, 2024. Acuité believes that in the absence of any major debt- funded capital expenditure plan in the near term; adequate cash accruals supported by lower reliance on the debt will lead to healthy financial risk profile over the medium term too.
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| Moderately intensive Working capital operations
BNPL’s working capital operations is intensive marked by high gross current Asset (GCA) at 112 days in FY 2025 as against 184 days in FY2024. The improvement in GCA days is on account of improved inventory days. Inventory days stood at 39 days in FY2025 as against 109 days in FY2024. Debtor day stood at 64 days in FY2025 as against 52 days in FY2024. Subsequently, the payable period stood at 27 days in FY2025 as against 31 days in F2024 respectively.
Susceptibility of profitability to volatility in raw materials prices and exposure to regulatory and foreign exchange risk
BNFPL's operating profitability is susceptible to volatility in raw material prices of black pepper, cardamom, chili and other herbs and spices which are procured internationally, i.e. from Morocco, Guatemala, Vietnam, to name a few, and also locally. Also, since BNFPL is the into both exports and imports of spices, it is regulated by the government (Spices Board India), thereby exposing the certain degree of regulatory risks. The company also exports around 70-80 percent, which partially mitigates the foreign exchange fluctuation risk. The risk, however, remains as the company does not actively hedge its balanced foreign exchange exposure.
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