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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 115.00 | ACUITE A | Stable | Upgraded | - |
| Bank Loan Ratings | 25.00 | - | ACUITE A1 | Upgraded |
| Total Outstanding | 140.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has upgraded its long-term rating to 'ACUITE A' (read as ACUITE A) from 'ACUITE A-' (read as ACUITE A minus) and the short-term rating to 'ACUITE A1' (read as ACUITE A one) from 'ACUITE A2+' (read as ACUITE A two plus) on the Rs. 140.00 Cr. bank facilities of BAPL Rototech Private Limited (BRPL). The outlook is 'Stable'.
Rationale for rating The rating upgrade factors the improvement in the financial risk profile marked by comfortable capital structure and strong coverage indicators. Going forward, the financial risk profile is expected to remain healthy with adequate liquidity. The ratings further takes into account of BRPL’s stable market position in the auto component segment and its strong foothold in the commercial vehicle segment, supported by the strong parentage. The ratings are however, constrained by the susceptibility to volatility in raw material prices along with high customer concentration. Nonetheless, the customer profile remains reputed and company is in process of expanding its capacity that would help it to diversify its customer base to an extent. The ratings also take into account the working capital intensive nature of the operations. Acuité notes that the company’s revenues and earnings are susceptible to the inherent cyclicality of the domestic CV industry. |
| About the Company |
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Incorporated on August 20, 2015, BAPL Rototech Private Limited (BRPL) is a Joint Venture between Welspun BAPL Private Limited (erstwhile Plastauto Private Limited) and Rototech SRL, Italy. The company specializes in design, development, production, and supply of automotive fuel tank and AdBlue tank. The company is a leading manufacturer of plastic fuel tanks, diesel exhaust fluid (DEF), urea tanks, adblue tanks and CV exterior parts fender, mud guards, snorkels etc. using roto moulding and blow moulding technology, catering the needs of the automotive industry in commercial vehicle (CV) segment in India. The company possess an extensive pan-India manufacturing footprint with 4 strategically located unit across the country at Pithampur, Jamshedpur, Pune and Pantnagar respectively. Directors of the company are Mr. Oreste Accornero, Mr. Giulio Accornero. Mr. Raju Govindarajalu, Mr. Davide Accornero, Mr. Rajesh Mandawewala, Mr. Viswanathan Kollengode and Mr. Yashovardhan Agarwal.
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| About the Group |
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The company is a subsidiary of Welspun BAPL Private Limited that is a part of the Welspun Group, with 100 per cent of the stake being held by trustee Mr. B.K. Goenka on behalf of the Welspun Group Master Trust. Welspun Group, promoted by Mr. Balkrishnan G Goenka and Mr. Rajesh R Mandawewala since 1985, is headquartered in Mumbai and has presence across varied business segment such as Home Textiles, Line Pipes, Infrastructure, Steel, Oil & Gas, Retail and Flooring Solutions.
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| Unsupported Rating |
| ACUITE BBB-/Stable |
| Analytical Approach |
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Acuité has taken a standalone view of the business and financial risk profile of BRPL to arrive at the rating. While arriving at the rating of BRPL, Acuité has taken into account a strong level of support from the Welspun group given that Welspun BAPL Private Limited (WBPL) has 70 per cent stake in BRPL.
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| Key Rating Drivers |
| Strengths |
| Strong parentage
Welspun Group holds over 70 per cent stake in BRPL through Welspun BAPL Private Limited (100 per cent of the stake being held by trustee Mr. B.K. Goenka on behalf of the Welspun Group Master Trust) and the balance is held by the Rototech Group, Italy. BRPL is likely to benefit from the strong reputation and financial flexibility of the Welspun Group, besides the extensive experience of its management team. Acuité also expects the group to extend need-based support to BRPL going forward. Improvement in revenue and operation margin The company’s revenue has grown at a CAGR of ~22% from FY22-FY25 (prov.) from Rs. 160.41 Cr. to Rs. 293.66 Cr. However, the company's operating income saw a marginal decline in FY25 (prov.), against FY 24 mainly due to reduced sales of commercial vehicles in India. The EBITDA margin also declined marginally, but remained comfortable at 13.87% in FY25 (prov.) compared to 14.19% in FY24 and 12.63% in FY23. This contraction in EBITDA margin is a result of lower absorption of fixed costs. PAT margin of the company is stood at 7.00% in FY25 (prov.) against 8.00% in FY24 and 7.07% in FY23 on the account of increment in the depreciation expenses. Acuité believes that going forward company's revenue mainly depends on sales of commercial vehicle in India which will be key monitorable in near to medium term. Healthy Financial Risk Profile Financial risk profile is healthy marked by tangible net worth which has improved and stood at Rs. 88.40 Cr. as on 31st March 2025 (prov.) against Rs. 69.33 Cr. in FY24 and Rs, 46.87 in FY23 due to accretion to reserves. Total debt of the company stood at Rs. 28.88 Cr. in FY25 (prov.) as against Rs. 31.96 Cr. in FY24 and Rs. 53.49 Cr. in FY23. Total debt of Rs. 28.88 Cr. in FY25 (prov.) consists of Rs. 14.33 Cr. of lease liability, Rs. 9.08 Cr. of term loan and Rs. 5.47 Cr. of current maturities. Debt to Equity ratio has improved to 0.33 times in FY 2025 (prov.) against 0.46 times in FY24 and 1.14 times in FY23. The strong debt protection metrics of the company is marked by Interest Coverage Ratio is stood at 17.13 times in FY25 (prov.) against 17.39 times in FY24 and 14.75 times in FY23. DSCR stood at 5.46 times in FY25 (prov.) against 8.13 times in FY24 and 7.48 times in FY23. TOL/TNW stood at 0.68 times in FY25 (prov.) against 1.14 times in FY24 and 2.61 times in FY23 while Debt-EBITDA stood at 0.70 times in FY25 (prov.) against 0.70 times in FY24 and 1.62 times in FY23. Currently the company is setting up the expansion of the existing capacity along with setting up a new plant at Pantnagar, Uttarakhand. This will result in a capital outlay of Rs. 60 Cr. which is to be funded through term loan (sanctioned and partially disbursed) and remaining through the internal accruals. Acuité believes that going forward the financial risk profile of the company is expected to remain healthy with the debt funded capex. |
| Weaknesses |
| Intensive Working capital operations
Company has intensive working capital operations as evident from gross current assets (GCA) of 112 days in FY25 (prov.) as compared to 105 days in FY2024 and 172 days in FY23. Debtor days stood at 50 days in FY2025 (prov.) as against 42 days in FY2024 and 72 days in FY23 and Inventory days stood at 60 days in FY25 (prov.) against 62 days in FY24 and 60 days in FY23. Whereas, creditor days stood at 43 days in FY2025 (prov.) against 60 days in FY2024 and 115 days in FY23. Acuité believes that the working capital operations of the company will remain at same level due to nature of the business. Profitability susceptible to macro-economic factors, industry cyclicality and raw material prices The automobile industry is subjected to macro-economic headwinds emanating from inflationary pressure and economic slowdown. Economic downturns impact consumer spending on discretionary items, and hence slowdown in economic activity can impact industry sales and thus impact the company. Raw materials and components prices constituting around 70 per cent of revenues are directly influenced by international commodity prices. However, Acuité believes the risk is mitigated to some extent as the increase in raw material prices are passed on to end customers, although with a lag. |
| Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix) |
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Acuite takes into consideration the benefit derived by BAPL Rototech Private Limited from the support of Welspun group. Stress Case Scenario |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The company has adequate liquidity marked by net cash accruals to its maturing debt obligations. The company generated the net cash accruals of Rs. 32.04 Cr. for FY25 (prov.) as against the debt repayment obligations of Rs. 3.90 Cr. for the same period. The current ratio of the company stood at 2.41 times as on 31st March 2025 (prov.) against 1.58 times as on 31st March 2024. The cash and bank balances of the company stood at Rs. 4.89 Cr. and also company does not rely on working capital limits for managing its requirements. The liquidity is also supported by the financial flexibility of the parent company which is expected to cushion the liquidity. Acuité believes that the liquidity position of the company will remain adequate on account of healthy net cash accruals against matured debt obligations, healthy current ratio albeit debt funded capex plans over the medium term.?
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 293.66 | 318.92 |
| PAT | Rs. Cr. | 20.55 | 25.50 |
| PAT Margin | (%) | 7.00 | 8.00 |
| Total Debt/Tangible Net Worth | Times | 0.33 | 0.46 |
| PBDIT/Interest | Times | 17.13 | 17.39 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any other information |
| None |
| Applicable Criteria |
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• 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 • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.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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