|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 35.00 | ACUITE BBB | Stable | Reaffirmed | - |
| Bank Loan Ratings | 50.00 | - | ACUITE A3+ | Reaffirmed |
| Total Outstanding | 85.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
|
Rating Rationale |
|
Acuité has reaffirmed the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and the short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.85.00 crore bank facilities of BCPL Railway Infrastructure Limited (BCRIL). The outlook is ‘Stable’.
Rationale for rating The rating reaffirmation takes into account improved scale of operations in FY25 owing to increase in order executions and moderate order book of ~Rs.296 Cr. as of October 2025 (2.25 times of FY25 revenue), timely execution and growth in which remains a key rating monitorable. Additionally, the rating derives its strengths from moderate financial risk profile on account of low debt profile and moderate debt protection metrics. Further, the rating considers established track record of the management in the industry with reputed clientele; however, remains constrained by the intensive working capital operations due to high unbilled revenue. Moreover, the company is subject to intensive competition & tender based nature of business which keeps the operating margins range bound. |
| About the Company |
|
Incorporated in 1995, BCPL Railway Infrastructure Limited (BCRIL) is a West-Bengal based company engaged in over head equipment (OHE) contracting which involves designing, drawing, supply, erection and commissioning of single-phase traction overhead equipment. BCRIL is a contractor for the Indian Railways facilitating execution of railway infrastructure development projects. The company is headed by Mr. Jayanta Kumar Ghosh and Mr. Uday Narayan Singh.
|
| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of BCPL to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Long track record of operations and experienced management
With over three decades of experience in the railway infrastructure sector, BCRIL has established a strong foothold across India. BCRIL caters to various railways zones such as Southern, Northern, Eastern, etc. also caters to a few large corporates. Also, the promoters brings the expertise of railway electrification projects which has enabled the company in building a lasting presence in the industry, fostering a strong relationship with Indian Railways. Improving scale of operations Post decline in operating income from Rs.122.83 Cr. in FY23 to Rs.88.02 Cr. in FY24 due to postponement of one order on account of delays from railways, the operating income improved to Rs.131.96 Cr. during FY25, driven by better order execution of the previous orders and further receipt of new orders during the year. The operating margin though reduced but continue to remain moderate at 8.04% in FY25 (8.84% in FY24). The decline was due to fluctuation in prices of raw material like steel, copper, etc. Further, the PAT margin stood at 6.28% in FY25. The outstanding order book stood moderate at Rs.296.90 Cr. as on October 3, 2025 (2.25 times of FY25 revenue), timely execution and growth in which remains a key rating monitorable. Moreover, the BCRIL recorded operating income of Rs.50.89 Cr. during H1FY26. Moderate financial risk profile The financial risk profile of the company is moderate marked by moderate net worth, low gearing and moderate debt protection metrics. The tangible net worth stood improved at Rs.94.79 Cr. as on 31st March 2025 as against Rs.89.16 Cr. as on 31st March, 2024 on account of profit accretion. The debt profile majorly includes working capital borrowing; therefore, the gearing (debt-equity) has remained below unity over the years and stood at 0.28 times as on 31st March, 2025. Moreover, the debt protection metrics also stood moderate with interest coverage ratio and debt service coverage ratio of 3.82 times and 3.22 times during FY25 respectively. Further, the TOL/TNW stood at 0.57 times as on 31st March, 2025 (0.39 times as on 31st March, 2024). Going forward the financial risk profile is expected to improve backed by steady accruals and no major debt funded capex. |
| Weaknesses |
| Intensive working capital management
The working capital operations of the company though improved but remain intensive, marked by gross current assets (GCA) of 314 days for FY25 (353 days for FY24). This majorly includes inventory days which remained high at 156 days in FY25 (205 days in FY24) owing to high unbilled revenue. Further, high GCA is also attributable to the security deposits placed with the customers. Moreover, the working capital is expected to remain intensive over the medium term considering the nature of business. Tender based nature of operations & competitive industry leading to margin fluctuation The railway infrastructure sector has presence of several mid to large sized players. The risk becomes more pronounced as tendering is based on minimum amount of bidding on contracts and there exists susceptibility to inherent cyclicality in the infrastructure segment. Therefore, BCRIL's revenues and margins are susceptible to the competitive bidding scenario. The EBITDA margin is further susceptible to the raw material procurement made during the year depending upon the stage of ongoing work order, which might lead to increase/decrease in the input costs. |
| Rating Sensitivities |
|
| Liquidity Position |
| Adequate |
|
The liquidity position of BCRIL is adequate as reflected from sufficient net cash accruals (NCA) of Rs.8.51 Cr. during FY25 as against maturing debt obligations of Rs.0.06 Cr. Going forward, the company is expected to generate cash accruals in the range of Rs.9.00-10.15 Cr. over the medium term, against no major repayment obligations for the same period. The current ratio stood healthy at 1.96 times during FY25. The current ratio stood at 1.96 times during FY25 and the cash and bank balance stood at Rs.23.91 Cr. in FY25. Further, the BCRIL’s reliance on working capital limits is moderate as reflected from average bank limit utilization which stood at ~68% for fund-based facilities and ~50% for non-fund based facilities for the last 6 months ended October, 2025.
|
| Outlook: Stable |
| |
| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 131.96 | 88.02 |
| PAT | Rs. Cr. | 8.29 | 5.53 |
| PAT Margin | (%) | 6.28 | 6.28 |
| Total Debt/Tangible Net Worth | Times | 0.28 | 0.18 |
| PBDIT/Interest | Times | 3.82 | 3.77 |
| 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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
|
| |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Contacts |
About Acuité Ratings & Research |
