Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 22.78 ACUITE BB+ | Stable | Reaffirmed -
Bank Loan Ratings 26.78 - ACUITE A4+ | Assigned
Bank Loan Ratings 9.22 - ACUITE A4+ | Reaffirmed
Total Outstanding 58.78 - -
Total Withdrawn 0.00 - -
 
Rating Rationale

Acuite has reaffirmed the long-term rating of “ACUITE BB+”(read as ACUITE Double B Plus) on Rs.22.78 crore bank facilities and short-term rating of “ACUITE A4+” (read as ACUITE A Four Plus) on the Rs.9.22 crore bank facilities of Globe Hi-Fabs Private Limited (Erstwhile Globe Hi-Fabs LlP) (GHFPL). The Outlook is "Stable".
Further, Acuite has assigned short term rating of “ACUITE A4+” (read as ACUITE A Four Plus) on the Rs.26.78 crore bank facilities of Globe Hi-Fabs Private Limited (Erstwhile Globe Hi-Fabs LlP) (GHFPL).

 Rationale for Rating:
The rating factors established operational track record, diversified business verticals, and moderate revenue growth to Rs.52.67 crore in FY2025 from Rs.49.92 crore in FY2024, primarily driven by order execution. The company benefits from strong customer retention and rising export sales, which increased to Rs.8.63 crore in FY2025, indicating growing international demand. Despite this, profitability margins declined due to higher material and employee costs, with operating margin at 8.07% and PAT margin at 2.91% for FY25. The financial risk profile remains average, marked by moderate net worth, high gearing (2.44x), and weakening debt protection metrics. Liquidity is adequate, supported by sufficient net cash accruals, moderate bank line utilization (~88%), and promoter funding flexibility, although the working capital cycle remains intensive due to high inventory and debtor days. Acuité expects GHFPL’s credit profile to remain stable over the medium term, backed by a healthy order book of Rs.132.94 crore, export traction, and continued operational support from promoters.


About the Company

Globe Hi Fabs Private Limited (GHFPL), based in Faridabad and originally founded as a partnership firm in 1965 by Mr. Kishan Kumar, has evolved into a private limited company in 2022 under the leadership of Mr. Rajiv Chopra and Mr. Aman Chopra. The company operates across three core verticals: fabrication of aviation refuelling units and hydrant dispensers, distributorship of specialized refuelling components from global brands like Eaton Carter, Faudi Aviation, and Gammon Technical Products, and turnkey EPC construction of fuel farms. With a strong domestic presence and international footprint spanning countries such as Saudi Arabia, UAE, Sri Lanks, Singapore, etc. 

 
Unsupported Rating
­Not Applicable.
 
Analytical Approach

­Acuite has taken standalone financial and business risk profile of GHFPL to arrive at this rating.

 
Key Rating Drivers

Strengths

Experienced Managerial Personnel
GHFPL benefits from strong promoter experience and a long operational track record, which underpin its business stability and customer relationships. Promoted by Mr. Aman Chopra and Mr. Rajiv Chopra, who together bring over six decades of expertise in aviation refuelling systems and equipment distribution, the company is further supported by a capable second line of management. This depth of industry knowledge has enabled GHFPL to build enduring ties with key suppliers and institutional clients, particularly in the aviation sector. With five decades of operations, the company’s reputation and consistent execution have reinforced its market position. Acuité believes GHFPL will continue to derive strategic advantage over the medium term from its experienced leadership and longstanding customer and supplier relationships.


Moderate operating performance:

GHFPL registered a moderate growth in operating revenue to Rs.52.67 crore in FY 2025 from Rs.49.92 crore in FY 2024, supported by Rs.5.48 crore booked from fuel firm construction at Jaipur International Airport. Export sales increased significantly to Rs.8.63 crore (16% of total sales) from ?4.98 crore (10%) in the previous year, indicating rising international demand and margin potential. Despite top-line growth, operating profit margin declined to 8.07% in FY 2025 from 9.25% in FY 2024 due to higher material and employee costs and the construction cost of the fuel farm facility. PAT margin also fell to 2.91% from 3.57% due to lower EBITDA and increased finance costs. The company recorded Rs.18 crore in revenue during April–July 2025 and maintains a strong order book of Rs.132.94 crore as of August 7, 2025. Acuité believes GHFPL’s healthy order pipeline and growing export traction will support its revenue visibility and profitability over the medium term, despite margin pressures from competitive bidding.

 


Weaknesses

­­Average Financial Risk Profile

GHFPL maintains an average financial risk profile, marked by moderate net worth and elevated leverage. The company’s net worth improved to Rs.8.95 crore in FY 2025 from Rs.7.41 crore in FY 2024, supported by internal accruals. However, gearing rose to 2.44 times in FY 2025 from 2.36 times in FY 2024 due to increased short-term borrowings. Debt protection metrics weakened slightly, with Interest Coverage Ratio (ICR) declining to 2.27 times in FY 2025 from 2.57 times in FY 2024 and Debt Service Coverage Ratio (DSCR) falling to 1.57 times in FY 2025 from 1.87 times in FY 2024. NCA/TD ratio also dropped to 0.09 times in FY 2025 from 0.12 times in FY 2024. Additionally, Total Outside Liabilities to Tangible Net Worth (TOL/TNW) increased to 4.22 times in FY 2025 from 3.37 times in FY 2024, driven by higher current liabilities, notable advances from Jaipur Airport Authority. Acuité expects the financial risk profile to remain average over the medium term, supported by supported by improving accruals.

 

Intensive Working Capital Cycle:

GHFPL continues to exhibit an intensive working capital cycle, with Gross Current Assets (GCA) days increasing to 277 days in FY 2025 from 214 days in FY 2024, driven by persistently high inventory holding of 133 days in both years. The company’s strategy to stock equipment parts in advance for timely delivery of refueling systems contributes to elevated inventory levels. Debtor days rose to 89 days in FY 2025 from 79 days in FY 2024, reflecting delays in collections from government clients and high year-end billing. Additionally, other current assets surged to Rs.9.86 crore in FY 2025 from Rs.2.52 crore in FY 2024 due to increased supplier advances, further stretching liquidity. However, accounts payable days improved to 41 days from 53 days, offering partial relief. Acuité expects GHFPL’s working capital intensity to gradually ease over the medium term, supported by better receivables management and ongoing efforts to optimize inventory levels.

 

Exposure to currency fluctuation risk:

GHFPL’s exposure to foreign exchange risk remains credit sensitivity, as the company engages in both export and import transactions without a formal hedging policy, relying solely on spot pricing. This approach leaves the company vulnerable to currency volatility, which could impact margins and cash flow. The absence of hedging mechanisms amid rising forex exposure heightens the company’s susceptibility to adverse exchange rate movements. Acuité notes that while GHFPL has maintained profitability, the implementation of a structured hedging framework would be prudent to mitigate currency-related risks and support financial stability
.

Rating Sensitivities

­­1. Working capital management
2. Capital structure of the Company
3. Timely execution of orders

 
Liquidity Position
Adequate

GHFPL’s liquidity position remains adequate, supported by sufficient Net Cash Accruals (NCA) of Rs.1.90 crore in FY2025 against long-term debt obligations of Rs.0.49 crore, and whereas NCA was stood at Rs.2.17 crore in FY2024 against debt obligations of Rs.0.31 crore. The promoters also have the flexibility to bring in funds in the business in the form of unsecured loans. Additionally, the current ratio declined to 1.14 times in FY2025 as against 1.42 times in FY2024 on account increase in other current liabilities. The average bank limit utilization stood at ~88% for the six months ended July 2025, indicating moderate reliance on external working capital funding. The cash and bank balance of Rs.0.33 crore as on FY2025 Acuité expects the company’s liquidity profile to remain adequate over the medium term, backed by moderate accruals, moderate bank line utilization, and promoter’s financial flexibility to infuse need based funds in business.

 
Outlook: Stable
­
 
Other Factors affecting Rating
­None.
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 52.67 49.92
PAT Rs. Cr. 1.53 1.78
PAT Margin (%) 2.91 3.57
Total Debt/Tangible Net Worth Times 2.44 2.36
PBDIT/Interest Times 2.27 2.57
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
• 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

Note on complexity levels of the rated instrument

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
24 May 2024 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4+ (Reaffirmed)
Letter of Credit Short Term 4.00 ACUITE A4+ (Reaffirmed)
Bank Guarantee (BLR) Short Term 1.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 8.00 ACUITE BB+ | Stable (Reaffirmed )
Cash Credit Long Term 4.00 ACUITE BB+ | Stable (Reaffirmed )
03 Mar 2023 Bank Guarantee/Letter of Guarantee Short Term 15.00 ACUITE A4+ (Reaffirmed)
Letter of Credit Short Term 4.00 ACUITE A4+ (Assigned)
Bank Guarantee (BLR) Short Term 1.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 8.00 ACUITE BB+ | Negative (Reaffirmed)
Cash Credit Long Term 4.00 ACUITE BB+ | Negative (Assigned)
16 Feb 2022 Bank Guarantee/Letter of Guarantee Short Term 15.00 ACUITE A4+ (Reaffirmed)
PC/PCFC Long Term 4.00 ACUITE BB+ | Stable (Reaffirmed)
Cash Credit Long Term 5.00 ACUITE BB+ | Stable (Reaffirmed)
­

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. 9.22 Simple ACUITE A4+ | Reaffirmed
HDFC Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 26.78 Simple ACUITE A4+ | Assigned
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 19.85 Simple ACUITE BB+ | Stable | Reaffirmed
HDFC Bank Ltd Not avl. / Not appl. Term Loan 01 Sep 2024 Not avl. / Not appl. 07 Dec 2026 0.93 Simple ACUITE BB+ | Stable | Reaffirmed
HDFC Bank Ltd Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE BB+ | Stable | Reaffirmed

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