Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has reaffirmed and withdrawn its long-term rating of 'ACUITE BBB-’ (read as ACUITE Triple B minus) and the short term rating to 'ACUITE A3' (read as ACUITE A Three) on Rs. 74.00 crore bank facilities of Hamon Cooling Systems Private Limited (HCSPL). The rating is being withdrawn on account of request received from the company and No Objection Certificate (NOC) received from the bankers.
Further, Acuité has withdrawn its Short-term rating on Rs. 36.00 crore proposed bank facilities of Hamon Cooling Systems Private Limited (HCSPL), without assigning any rating as it is a proposed facility. The rating is being withdrawn on account of request received from the company.
The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.
Rationale for rating
The rating reaffirmation considers the established track record of the company over the last two decades along with long standing experience of the management in the industry. The rating is further supported by a healthy order book of Rs.1016.38 crore (as on February 28, 2026) and onset of spare part business giving sound revenue visibility and steady margins along with moderate financial risk profile. However, these strengths are partly offset by the intensive working capital operations of company as marked by higher gross current asset (GCA) days constituting high debtors and other current assets. Further, it also factors in the risk faced by the company from strong competition and industry specific revenue concentration.
About the Company
HCSPL was originally incorporated as an Indian subsidiary of Hamon & Cie (International), part of Belgium based Hamon Group. Later in April 2022, Hamon and Cie (International) filed for bankruptcy, which eventually led to acquisition of HCSPL by Mr. Akhileshwar Gangadeen Chorasiya in October 2022.
HCSPL carries out design, manufacture, construction and commissioning of different types of cooling towers and systems. It offers a wide range of wet cooling towers, including large natural draft concrete cooling towers, FRP package towers and large mechanical draft cooling towers. It also provides forced draft towers along with spares and maintenance of cooling towers. The manufacturing facility of company is situated at Umbergaon, Gujarat. The current directors of the company are Mr. Akhileshwar Gangadeen Chorasiya. and Mrs. Nootan Akhileshwar Chorasiya.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profiles of HCSPL to arrive at the rating.
Key Rating Drivers
Strengths
Established track record with professional and experienced management
HCSPL has a track record of operations of more than two decades in the cooling tower manufacturing industry. Before the acquisition of HCSPL, the promoter of the company, Mr. Akhileshwar Chorasiya, was engaged in the cooling tower business for ten years through another company, Cleanflow Cooling Tower Solutions Private Limited, and was associated with HCSPL as a sub-contractor. The company has built its position in the industry with a healthy order book from oil & gas and power companies such as Numaligarh Refinery, IOCL, and Adani.
Improved operating performance
HCSPL recorded revenue of Rs.265.22 crores in FY25 compared to Rs.217.89 crores in FY24, supported by order execution, while sales in FY26 are estimated at about ~Rs.240 crores, lower than FY25, as orders worth ~Rs.40 crores were deferred to FY27 due to site unavailability at the customer’s end. Operating margins stood at 3.47% in FY25 versus 0.83% in FY24 and are expected to remain at similar levels in FY26.
Moderate financial risk profile
The financial risk profile of the company remained moderate marked by a moderate net worth, low gearing, and healthy debt protection metrics. The net worth of the company stood at Rs. 60.05 crores as on March 31, 2025 as against Rs. 54.09 crores as on March 31, 2024. The increase in net worth is primarily due accretion of profits to reserves. The gearing of the company decreased to 0.31 times as on March 31, 2025 as against 0.40 times as on March 31, 2024. The debt borrowings consist of short term working capital facility and USL of Rs.7.85 crores. The debt protection metrics remained healthy with DSCR and Interest coverage ratio both standing at 2.55 times and 3.08 times respectively as on March 31, 2025.
Weaknesses
Intensive working capital operations
The working capital operations of the company remains intensive marked by GCA days of 178 days in FY25 (168 days in FY24). This is majorly attributable to the high debtor and other current assets (contract assets) of the company. The debtors’ days stood at 87 days in FY25 (92 days in FY24). Further, the inventory days stood low at 4 days in FY25 as against 2 day in FY24 as the company directly gets the inventory supplied to plant. The creditors days stood at 77 days in FY25 as against 70 days in FY24. Therefore, the reliance of working capital limits is moderate, reflected by average utilizations of around ~59.64 percent in last 5 months ended December’ 2025.
Risk from strong competition and sector specific revenue
HCSPL operates in a highly competitive industry, facing strong rivals with significant experience. Its revenue base is heavily concentrated in the oil & gas and power sectors, which means any slowdown in these industries could directly impact the company’s performance. In addition, the business is largely tender-driven, requiring frequent participation in contract bidding. While the company secures tenders at competitive prices, this approach can put pressure on profitability, and the inherent uncertainties in tender allotments add further risk. That said, HCSPL’s established track record and industry presence help mitigate these challenges, enabling it to consistently procure tenders.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Not Applicable
Potential triggers (individual or collective) for a downward rating action:
Not Applicable
Liquidity Position
Adequate
The liquidity position of HCSPL is adequate marked with moderate cash accruals and no major repayment obligations for the company. The current ratio of the company stood at 1.32 times as on March 31, 2025. The average bank limit utilization in fund-based facility for last 5 months ended December 31, 2025 stood moderate at ~59.64 percent. Further, the company also maintained cash and bank balance of Rs. 6.44 crores as on March 31, 2025.
Outlook - Not Applicable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
265.22
217.89
PAT
Rs. Cr.
6.30
16.13
PAT Margin
(%)
2.38
7.40
Total Debt/Tangible Net Worth
Times
0.31
0.40
PBDIT/Interest
Times
3.08
7.74
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Contacts
List of instruments and names of regulators of the instruments
