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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
|---|---|---|---|
| Bank Loan Ratings | 45.49 | ACUITE C | Downgraded & Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 45.49 | - | - |
Rating Rationale |
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Acuité has downgraded and withdrawn its long term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE B+' (read as ACUITE B plus) on Rs. 45.49 Cr. bank loan facilities of Ducon Infratechnologies limited (DIL). The rating has been withdrawn on account of request received from the company and No Objection certificate (NOC) issued by the banker. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.
Rationale for downgrade: The rating downgrade takes cognizance of delays in servicing debt obligations by DIL in term loan (GECL loan) in the month of September 2025 as reflected in the credit bureau information report (CRIF) as well as the term loan account statements of the company. |
About the Company |
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Incorporated in March 2005, Maharashtra-based Ducon Infratechnologies Limited (DIL) is the Indian arm of Ducon Technologies Inc., USA. The company is promoted by Mr. Arun Govil. Ducon undertakes turnkey projects for setting up industrial pollution control and material handling systems. Ducon Infratechnologies Limited was established in India to take advantage of opportunities in the Indian subcontinent in the fields of air pollution control, bulk material handling, and other related industrial projects. As an EPC (Engineering Procurement & Construction) company, DIL has executed multiple projects over the last 14 years in India.
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| About the Group |
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The Ducon Group (DG) consists of two companies i.e. Ducon Infratechnologies Limited and its wholly owned subcompany, company Ducon Combustion Equipment Inc. (DCE). In the year 2017, DIL has set up its wholly owned subsidiary company in the name of Ducon Combustion Equipment Inc. (DCE) in New York, USA in order to sell diversified combustion and power products. The products includes steam & power turbines, heat recovery steam generators and cogeneration plants using both gas and biomass fuels.
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Unsupported Rating |
| Not applicable |
Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has consolidated the business and financial risk profiles of Ducon Infratechnologies Limited (DIL) and its wholly own subsidiary Ducon Combustion Equipment Inc. (DCE) together referred to as the ‘Ducon Group’ (DG). The consolidation is i.n view of the common management, same line of business and financial linkages between the entities.
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Key Rating Drivers |
Strengths |
| Established tracked record of operations along with experienced management
Ducon, promoted by Mr. Arun Govil (Managing Director), is engaged in undertaking EPC contracts for setting up industrial pollution control and material handling systems, as well as dealing in IT hardware. The company has forayed into FGD systems in thermal power plants, along with bulk material handling services and rural and urban electrification, including the construction of substations. The promoter, Mr. Arun Govil, has gained over three decades of experience from his overseas business in Ducon Technologies Inc. and is ably supported by a well-experienced second line of management. The experience of the promoters and the well-established track record of operations have helped the company build strong relationships with some of the reputed clientele in the country. Acuité believes that the company will sustain its existing business risk profile on the back of an established track record of operations and experienced management over the medium term.
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| Instance of delay in debt servicing
Instance of delays in servicing debt obligations by DIL in term loan (GECL loan) in the month of September 2025 by 1 day as reflected in the credit bureau information report (CRIF) as well as the term loan account statements of the company.
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Rating Sensitivities |
| Not applicable |
| Liquidity Position: Poor |
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The liquidity position of the company is marked poor on account of instance of delay in servicing of term loan obligation by the company.
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| Outlook: Not applicable |
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Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
|---|---|---|---|
| Operating Income | Rs. Cr. | 450.63 | 418.76 |
| PAT | Rs. Cr. | 13.55 | 7.63 |
| PAT Margin | (%) | 3.01 | 1.82 |
| Total Debt/Tangible Net Worth | Times | 0.61 | 0.86 |
| PBDIT/Interest | Times | 2.91 | 2.21 |
Status of non-cooperation with previous CRA (if applicable) |
| Not applicable |
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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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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