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.
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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.
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