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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 20.00 | ACUITE B | Reaffirmed & Withdrawn | - |
| Bank Loan Ratings | 81.76 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 101.76 | - | - |
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Rating Rationale |
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Acuité has reaffirmed and withdrawn the long-term rating of ‘ACUITE B’ (read as ACUITE B) on Rs. 20.00 Cr. bank facilities of Arcadia Shipping Limited (ASL). The rating has been withdrawn on account of the request received from the issuer along with No objection certificate from the banker.
Acuité has also withdrawn the long-term rating on the Rs. 37.09 crore bank facilities of Arcadia Shipping Limited (ASL) without assigning any rating as the Instrument is fully repaid. The rating is being withdrawn on account of request received from the issuer, and NDC (No Dues Certificate) received from the banker. Acuité has also withdrawn its rating on the proposed long-term bank facilities of Rs. 44.67 Cr. of Arcadia Shipping Limited (ASL) without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the issuer. The withdrawal is in accordance with Acuite's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for Rating Reaffirmation The rating reaffirmation factors in the company’s subdued operating performance, reflected in a notable deterioration in revenue scale and profitability margins during 9M FY2026. The company reported operating-level losses of Rs. (1.44) Cr. on the revenue of Rs. 2.54 Cr. in 9M FY2026. The financial risk profile continues to remain below average, characterised by moderate gearing, a modest net worth base and weak debt protection metrics. The rating is further constrained by the working capital–intensive nature of operations. Additionally, the company’s operations are expected to be suspended in the near term. |
| About the Company |
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Mumbai based Arcadia Shipping Limited (ASL) was incorporated in 1981. The company promoted by Mr. Mukesh Navinchandra Shah, Mr. Anjan Navinchandra Shah, Mr. Vinit Navinchandra Shah is engaged in ship owning & management, shipping agent’s/liner operations, ship broking/chartering, lighterage contractors, coastal cargo movements and support for offshore activities in the oil and gas sector. The company owned and operated two dry bulk vessels i.e., Navdhenu Sun and Navdhenu Purna with an aggregate capacity of 102,400 DWT. Both these dry bulk vessels were mainly deployed with Department of Fertilizers, Government of India (GoI).
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| About the Group |
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Supreme Offshore Constructions and Technical Services LTD (SOCTSL)
Supreme Offshore Constructions and Technical Services Limited was incorporated in 1994 & is based in Mumbai. The company has vast experience in the fields of Project Management, Procurement, Manufacturing, Fabrication, Supply installation Pre Commissioning and Commissioning of various equipment and have been associated with well established organization dealing with Oil & Gas Platforms, Fertilizers, Chemicals, Petrochemicals, Diving companies. Mr. Mukesh Navinchandra Shah, Mr. Anand Harshvadan Shah, Mr. Anjan Kumar Navichandra Shah & Mr. Vinit Navinchandra Shah are the current directors of the company. |
| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| The team has considered the consolidated view of the business and financial risk profiles of Arcadia Shipping Limited (ASL) and Supreme Offshore Constructions and Technical Services Limited (SOCTSL) to arrive at the rating. The consolidation is in the view of SOCTSL being wholly owned subsidiary of ASL, common line of business, operational synergies, cash fungibility and common management.
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| Key Rating Drivers |
| Strengths |
| Established presence in the shipping industry
The group is led by Mr. Mukesh N. Shah (Chairman and Managing Director), who brings over three decades of experience in the shipping industry and real estate. Established in 1981, the group has built a strong presence in the shipping industry and developed long-standing relationships with government entities such as the Department of Fertilizers, GoI, and KIOCL Limited, as well as private sector players like JSW Steel Limited and the Essar Group, among others. The board is composed of highly qualified directors with three to four decades of industry experience. Below- Average financial risk profile The group has a Below average financial risk profile marked by moderate net worth, moderate gearing and average debt protection metrics. The tangible net worth of the group stood at Rs. 54.06 crore as on March 31, 2025 as against Rs. 57.77 crore as on March 31, 2024 due to losses incurred in the FY25. The gearing stood at 1.84 times as on March 31, 2025 as against 3.15 times as on March 31, 2024 due to reduced utilisation of working capital limits. The Interest coverage ratio of the group stood at 2.02 times in FY25 as compared to 1.92 times in FY24. The DSCR also stood lower at 1.14 times in FY25 as compared to 1.60 times in the previous year. The total debt of the group decreased to Rs. 99.32 Cr. as on March 31, 2025 as against Rs. 181.72 Cr. as on March 31, 2024, driven by substantial loan repayments during the year. Additionally, the Arcadia Shipping Limited (ASL)’s operations are expected to be suspended in the near term. |
| Weaknesses |
| Subdued scale of operations coupled with the suspension of the company's activities
The revenue of the group declined and stood at Rs. 283.44 crore in FY25 compared to revenue of Rs. 298.77 crore in FY24During 9MFY26, revenue declined sharply to Rs. 2.54 crore, reflecting a further contraction in business activity. Arcadia Shipping Limited (ASL) expected to suspend its operations in the near term. The operating profit margin of the group stood at 19.48 percent in FY25 compared against 13.75 percent in FY24. The PAT margin of the group deteriorated and stood at (1.32) percent in FY25 compared to (0.55) percent in FY24. Working capital intensive operations The group has an intensive working capital operation with average gross current asset (GCA) days standing over 256 days in FY25. Inventory days stood at 16 days in FY2025 against 27 days in FY2024 on account of lower levels of work-in-progress. The debtor days stood at 208 days for FY25 against 149 days for FY24. The creditor days of the group stood at 131 days for FY25 as against 105 days for FY24. The group's working capital operations are intensive in nature, however the reliance on working capital limits has been reduced as the operations are expected to be suspended in the near term. |
| Rating Sensitivities |
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Not Applicable
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| Liquidity Position |
| Stretched |
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The group’s liquidity is stretched, reflected in low net cash accruals of Rs. 4.95 crore in FY2025. The group is not expected to generate positive net cash accruals given the further deterioration in profitability thereby exerting stretch in liquidity. The group’s working capital requirements remains intensive as reflected by high gross current assets (GCA) of 256 days as on March 31, 2025 (205 days as on March 31, 2024). The current ratio stood at 1.63 times as of March 31, 2025. The cash and bank balances of the group stood at Rs. 4.34 Cr. as on March 31, 2025.
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| Outlook |
| Not Applicable |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 283.44 | 298.77 |
| PAT | Rs. Cr. | (3.74) | (1.63) |
| PAT Margin | (%) | (1.32) | (0.55) |
| Total Debt/Tangible Net Worth | Times | 1.84 | 3.15 |
| PBDIT/Interest | Times | 2.02 | 1.92 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| 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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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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