![]() |
![]() |
Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
Bank Loan Ratings | 25.00 | ACUITE BBB | Stable | Assigned | - |
Bank Loan Ratings | 49.20 | ACUITE BBB | Stable | Upgraded | - |
Bank Loan Ratings | 0.80 | - | ACUITE A3+ | Upgraded |
Total Outstanding | 75.00 | - | - |
Rating Rationale |
Acuite has upgraded its long-term rating to 'ACUITE BBB' (read as ACUITE triple B) from ‘ACUITE BB+’ (read as ACUITE double B plus) and short-term rating to 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.50 crore bank facilities of Indo Allied Protein Foods Private Limited. The outlook is 'Stable'. |
About Company |
Incorporated on December 31, 2003, Indo Allied Protein Foods Pvt. Ltd. (IAPFPL) is engaged in primarily engaged in supplying of food articles such as edible oil, pulses, bay kit, and some other food grains and non-food items such as shoes, safety kit, notebook, etc. to the Maharashtra State Government departments under various schemes. The Mumbai based company also has its own manufacturing facility in Chakan, where it produces ready to cook food like Upama, noodles, etc. further, it also has central kitchen in Bhivandi to supply meals under the state government schemes. The Company is promoted by Mr. Rajan Jadhav and his family members. |
About the Group |
Indo Group comprising Indo Allied Protein Foods Private Limited (IAPFPL), Saroj Enterprise and Shiva Enterprise, is mainly into supply of food and non-food items to the various departments of the Maharashtra State Government either directly or indirectly. While IAPFPL supplies directly to the state government departments, Saroj Enterprise and Shiva Enterprise (partnership firms) supply to private players, who in turn supply to the Maharashtra State Government departments. |
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 Indo Allied Protein Foods Private Limited, Shiva Enterprise and Saroj Enterprise. Together they are referred to as the Indo Group considering their common line of business, common management and significant operational and financial linkages |
Key Rating Drivers |
Strengths |
Experienced management and long-track record of operations |
Weaknesses |
Moderate intensive working capital operations: |
Rating Sensitivities |
|
Liquidity Position: Strong |
Indo allied group’s liquidity position is strong which is evident from sufficient net cash accruals (NCA) against the debt repayment obligations. The group has reported Net Cash Accruals (NCA’s) of Rs.231.35 Cr. on March 31, 2023 against minuscule debt repayment obligations of Rs. 6.06Cr. The cash accruals are estimated to remain in the range of Rs.290-330 Cr. in the medium term against expected debt repayment range of Rs.3.40-3.50 Cr. for the same period. |
Outlook: Stable |
Acuité believes that Indo Group would maintain 'Stable' outlook on the back of experienced management, long track record of operations, healthy financial risk profile and improved operating performance. The outlook may be revised to 'Positive' in case the company reports higher-than-expected growth in revenue and improvement in profits. Conversely, the outlook may be revised to 'Negative' in case the company reports lower-than-expected improvement in growth and in profitability, thereby deteriorating financial risk profile and liquidity position. |
Other Factors affecting Rating |
None |
Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
Operating Income | Rs. Cr. | 1293.78 | 968.32 |
PAT | Rs. Cr. | 220.76 | 196.47 |
PAT Margin | (%) | 17.06 | 20.29 |
Total Debt/Tangible Net Worth | Times | 0.22 | 0.17 |
PBDIT/Interest | Times | 48.08 | 71.56 |
Status of non-cooperation with previous CRA (if applicable) |
Not Applicable |
Any Other Information |
None |
Applicable Criteria |
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Complexity Level Of Financial Instruments: https://www.acuite.in/view-rating-criteria-55.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Trading Entitie: https://www.acuite.in/view-rating-criteria-61.htm |
Note on Complexity Levels of the Rated Instrument |
In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) |
|
Contacts |
|
|
About Acuité Ratings & Research |
© Acuité Ratings & Research Limited. All Rights Reserved. | www.acuite.in |