|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 75.00 | ACUITE BBB+ | Stable | Assigned | - |
| Bank Loan Ratings | 85.00 | ACUITE BBB+ | Stable | Reaffirmed | - |
| Bank Loan Ratings | 340.00 | - | ACUITE A2 | Reaffirmed |
| Total Outstanding | 500.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
|
Rating Rationale |
|
Acuité has reaffirmed the long-term rating to ‘ACUITE BBB+’ (read as ACUITE triple B plus) and the short-term rating to ‘ACUITE A2’ (read as ACUITE A two) on the Rs. 425.00 crore bank facilities of Goa Carbon Limited (GCL). The outlook is 'Stable'.
Further, Acuité has assigned the long-term rating to ‘ACUITE BBB+’ (read as ACUITE triple B plus) on the Rs. 75.00 crore bank facilities of Goa Carbon Limited (GCL). The outlook is 'Stable'. Rationale for rating The rating factors the continued decline in the operating profits of the company which decreased to Rs. (17.69) crore in H1 FY26 as against Rs. (5.56) crore in H1 FY25. This decline is attributable to the reduction in calcined petroleum coke (CPC) realisations over the period as compared to the raw material – raw petroleum coke (RPC) prices. Moreover, the sales volume of the company has also moderated in Q2FY26 due to upgradation and maintenance shutdowns at all the locations for majority of the quarter. However, the rating continues to derive strength from its established track record and the extensive experience of the management. The rating also takes into account the moderate financial risk profile of the company marked by moderate net-worth and gearing. These strengths are however offset by the moderate working capital operations consisting majorly of inventory. Further, the company operates in a highly restricted environment wherein import of pet coke by CPC manufacturers as well as smelters are based on the specific quota decided by Directorate General of Foreign Trade (DGFT). The rating also factors in the customer concentration risk as ~80 percent of the revenue is marked from just three customers. |
| About the Company |
|
Incorporated in 1967, GCL is engaged in manufacturing and marketing of calcined petroleum coke (CPC). It has three manufacturing facilities located at Goa, Bilaspur and Paradeep with a combined capacity of 308,000 metric tonnes per annum. Mr. Shrinivas V Dempo is the chairman of the company. GCL is a part of Dempo Group which has an established presence in construction, publishing, ship building, travel, trade, etc.
|
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
|
Acuité has considered the standalone business and financial risk profile of the Goa Carbon Limited (GCL) to arrive at the rating
|
| Key Rating Drivers |
| Strengths |
| Established track record of operations with experienced management
GCL has an established track record of operations of over five decades and supported by an experienced management team. The company is a part of Dempo group of companies, promoted by Mr. Shrinivas Dempo, who has an extensive experience of over three decades in the industry. The company is into the manufacturing of CPC which is majorly used by aluminium smelters for making anodes. The company deals with reputed aluminium players in the country like Hindalco Industries, Vedanta, Bharat Aluminium, Kirloskar Ferrous, etc. On the other side the company procures it raw material i.e RPC majorly from foreign countries such as UAE, Oman, Kuwait, etc. Further, the company has also launched high performance carbon raiser products under its brand name ‘gcarb+’ for various customers operating in foundries, sponge iron plants, glass manufacturing units, steel plants and in other related applications. Acuite believes that the established position in the industry and extensive experience of the management will help the company to maintain a stable business profile in the CPC segment. Moderate capital structure While the net worth of the company declined due to operational losses, it stood moderate at Rs.188.14 crore as on September 30, 2025 (Rs 217.61 crore as on March 31, 2025). However, the gearing increased to 2.08 times (Net-debt/Equity -1.23) as on September 30, 2025 as against 1.29 times (Net-debt/Equity - 0.88 times) as on March 31, 2025 due to increase in the short term working capital borrowings for the company. Acuite believes that the while the operating performance in the current year has affected the financial risk profile of the company to higher extent, however, it is expected to remain at similar level over the medium term. |
| Weaknesses |
| Significant decline in operating performance
While the company marked improvement in the operating income in H1 FY26 which increased to Rs. 301.60 crore as compared to Rs.246.51 crore in H1 FY25, the operating profits declined significantly to Rs. (17.69) crore in H1 FY26 as against Rs. (5.56) crore in H1 FY25. This decline is mainly attributed to falling CPC realisations and the conversion of RPC inventory into CPC, which has resulted in elevated raw material costs. Further, the volumes in Q2FY26 was also affected due to upgradation and maintenance shutdown at all three plants for majority period of the quarter. Furthermore, the rise in the CPC import quota combined with volatile international prices is prompting end users to source directly from global markets, thereby impacting the company's sales volume. Going forward, any further decline in operating performance due to reduction in realisations shall remain a key rating sensitivity. Intensive working capital operations The working capital operations of the company remained intensive marked by gross current asset (GCA) days of 307 days in FY25 as against 117 days in FY24. The GCA days comprise of high inventory and moderate debtors’ levels. The inventory days increased to 164 days in FY25 as against 86 days in FY24 pertaining to purchase of fresh RPC material by the company towards the year end. The debtor days also increased and stood at 48 days in FY25 as against 21 days in FY24. However, the creditors days stood at 15 days in FY25 as against 7 days in FY24. Profitability susceptible to price volatility and cyclicality of the industry CPC is produced from “green” petroleum coke, which is a byproduct of oil refining and is extensively used to make anodes for the aluminium, steel and titanium smelting industry. The company’s performance remains vulnerable to cyclicality in the aluminium and steel sector as demand for the same depends on the performance of the end user segments such as electronics, aviation, real estate etc. Further, the RPC and CPC prices are predominantly influenced by China market and other global factors. Additionally, the company operates in a highly restricted environment wherein import of pet coke by CPC manufacturers as well as smelters are based on the specific quota decided by Directorate General of Foreign Trade (DGFT). Thus, the operating performance of the company is exposed to fluctuations in the prices of raw materials, realization from finished goods and allocation of quota by DGFT. |
| Rating Sensitivities |
|
| Liquidity Position |
| Adequate |
|
The company maintains adequate liquidity surplus which was utilised to repay the interest obligations on short term borrowings in FY25. As on September 30, 2025, the company has only short-term borrowings in the form of cash credit and buyer’s credit. The cash and cash equivalents stood healthy at Rs. 159.49 crore as on September 30, 2025, and the current ratio of the company stood moderate at 1.47 times as on March 31, 2025. The average bank limit utilisation for last 9 months ended September 2025 stood moderate at 86.10 percent on closing basis.
|
| Outlook : Stable |
| |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 508.47 | 1057.31 |
| PAT | Rs. Cr. | (22.03) | 85.50 |
| PAT Margin | (%) | (4.33) | 8.09 |
| Total Debt/Tangible Net Worth | Times | 1.29 | 1.35 |
| PBDIT/Interest | Times | (0.41) | 5.96 |
| 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 |
|
| |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| |
|
Contacts |
About Acuité Ratings & Research |
