Press Release April 02, 2025 CYBER AUTOMOBILES PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	80.80	ACUITE BB | Stable | Reaffirmed	-
Bank Loan Ratings	0.55	-	ACUITE A4+ | Reaffirmed
Total Outstanding	81.35	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed its long term rating of ‘ACUITE BB’ (read as ACUITE double B) and short term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 81.35 Cr. bank facilities of Cyber Automobiles Private Limited (CAPL). The outlook is 'Stable'. Rationale for rating reaffirmation The rating reaffirmation considers the steady scale of operations and profitability margins. The rating also factors in the established position of the company of more than two decades and extensive experience of the promoters in the two-wheeler spare parts industry. However, the rating is constrained by working capital intensive nature of operations, below average risk profile and stretched liquidity position of the company.

About the Company

Cyber Automobiles Private Limited (CAPL) was incorporated in the year 2002 as an authorized distributor of spare parts of two wheelers such as TVS Motors, Royal Enfield, Yamaha Motors among others. The company has its own warehouse for storage. Also, the company operates majorly in the Southern Region of this country and has more than 10,000 dealers in state of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and Cochin to name a few. From 2018, CAPL has entered the dealership of tyres through Maxxis Tyre India Limited for two wheelers for Telangana, Andhra Pradesh, Karnataka & Tamil Nadu states. The company has also entered contract manufacturing of various automobile spare parts such as Cables, Levers, Drum Rubbers etc under the brand name ‘CAMP’.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered standalone business and financial risk profile of Cyber Automobiles Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Established track record and extensive experience of promoters CAPL was incorporated in 2002 reflecting an established track record of operations for more than two decades in the auto ancillary industry. The company is authorized distributors of various two wheelers across the southern part of the country. The promoters of the company including Mr. Pardha Saradhi Unnam, have more than two decades of experience in the respective business. The experience of promoters also helped the company to established long term relationships with leading two-wheeler OEMs such as TVS Motors, Royal Enfield among others along with auto ancillary companies such as Minda Industries. Acuité believes that CAPL will continue to benefit from extensive experience of the promoters along with longstanding relationship over the medium term.   Steady operating performance The company’s revenue stood at similar levels of Rs. 251.65 Cr. in FY24 as against Rs. 255.64 Cr. in FY23 on account of steady demand for spare parts of two wheelers from the aftermarket. Further, the company has reported revenue of ~Rs. 253.00 Cr. in 11MFY25. In FY25 the company has received a distribution of LCV spare parts of Ashok Leyland. The operating profit margin of the company stood at 5.07 percent in FY24 compared against 4.70 percent in FY23. The PAT margins of the stood at 0.81 percent in FY24 as compared to 0.88 percent in FY23. Acuite believes that the business risk profile of the company will continue to remain stable on account of steady demand from two-wheeler industry and the aftermarket over the medium term.

Weaknesses

Below average financial risk profile The financial risk profile of the company remained below average marked by low net worth, high gearing, and moderate debt protection metrics. The tangible net worth of the company stood low at Rs. 24.40 Cr. in FY24 as against Rs. 22.50 Cr. in FY23 due to accretion of profits to reserves. The total debt of the company stood at Rs. 110.72 Cr. as on 31st March 2024 as against Rs. 115.02 Cr. as on 31st March 2023. The debt outstanding as on 31st March 2023 comprises of long-term debt of Rs.10.34 Cr, Rs. 28.59 Cr. of unsecured loans from promoters and Rs. 71.78 Cr. of short-term debt.  The unsecured loans from promoters and directors are non-interest bearing. The gearing of the company remained high at 4.54 times in FY24 and as against 5.11 times in FY23. The TOL/TNW also improved yet stood high at 5.37 times as on 31st March 2024 as against 6.16 times as on 31st March 2023. The debt protection metrics remains moderate with debt service coverage ratio of 1.01 times in FY24 and interest coverage ratio stood at 1.44 times in FY24 as compared to 1.42 times and 1.50 times in FY23 respectively. Acuité believes that the financial risk profile of the company will continue to remain below average on the back of high gearing. Working capital intensive operations The operations of the company remained working capital intensive in nature marked by high GCA days of 203 days in FY24 as compared against 206 days in FY23. The high GCA days is majorly on account of high receivable days of 89 days in FY24 as against 95 days in FY23. The inventory levels of the company stood at 114 days in FY24 against 109 days in FY23 as the company keeps stock of around 2-3 months for timely execution of orders. The creditor days of the company stood at 33 days in FY24 as against 37 days in FY23. The working capital-intensive nature of operations also led to high reliance on working capital funding from lenders.  The average bank limit utilisation by the company is also fully utilised for 6 months ending February 2025. Acuité believes that the operations of the company will continue to remain working capital intensive in near to medium term on account of high receivable days.

Rating Sensitivities

Sustain Improvement in revenues and profitability Improvement in working capital cycle Changes in Financial risk profile

Liquidity Position

Stretched

The liquidity position of the company remained stretched led by full utilization of working capital limits majorly on account of working capital-intensive nature of operations. The company generated net cash accruals of Rs.3.09 Cr. against its repayment debt obligation of ~Rs.3.00 Cr. in FY24. Also, the company maintains a cash balance of Rs. 0.45 Cr. as on 31st March 2024.

Outlook: Stable

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Other Factors affecting Rating

­­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	251.65	255.64
PAT	Rs. Cr.	2.04	2.24
PAT Margin	(%)	0.81	0.88
Total Debt/Tangible Net Worth	Times	4.54	5.11
PBDIT/Interest	Times	1.44	1.50

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 05 Jan 2024 Bank Guarantee (BLR) Short Term 0.05 ACUITE A4+ (Assigned) Bank Guarantee (BLR) Short Term 0.50 ACUITE A4+ (Assigned) Covid Emergency Line. Long Term 5.25 ACUITE BB | Stable (Assigned) Proposed Term Loan Long Term 0.04 ACUITE BB | Stable (Reaffirmed) Covid Emergency Line. Long Term 5.51 ACUITE BB | Stable (Assigned) Cash Credit Long Term 35.00 ACUITE BB | Stable (Reaffirmed) Cash Credit Long Term 35.00 ACUITE BB | Stable (Reaffirmed) 08 Feb 2023 Cash Credit Long Term 35.00 ACUITE BB | Stable (Assigned) Cash Credit Long Term 35.00 ACUITE BB | Stable (Assigned) Proposed Term Loan Long Term 0.04 ACUITE BB | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.05 Simple ACUITE A4+ | Reaffirmed Karur Vysya Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE A4+ | Reaffirmed Karur Vysya Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE BB | Stable | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE BB | Stable | Reaffirmed Karur Vysya Bank Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 05 Jan 2026 5.55 Simple ACUITE BB | Stable | Reaffirmed Karur Vysya Bank Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 05 Jan 2028 5.25 Simple ACUITE BB | Stable | Reaffirmed

Contacts

Mohit Jain Senior Vice President - Rating Operations Nidhi Gala Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.