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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 10.04 | ACUITE BBB- | Stable | Assigned | - |
| Bank Loan Ratings | 12.00 | - | ACUITE A3 | Assigned |
| Total Outstanding | 22.04 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has assigned its long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B minus) and short-term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 22.04 Cr. bank facilities of JDS Transformers Industries Private Limited (JTIPL). The outlook is 'Stable'.
Rationale for rating assigned The rating assigned reflects JTIPL’s established operational track record of more than three decades, along with extensive experience of its management in the manufacturing and supplying conductors, winding wires, fabrication tanks, and transformers. Further, the rating factors in the growth in operating income, with a CAGR of approximately 55% for the period between FY2025 and FY2023 coupled with moderate order book position, below unity gearing, comfortable debt protection metrics efficient working capital and adequate liquidity. However, the above-mentioned strengths are constrained by low net worth and challenges faced by transformer manufacturers in India. |
| About the Company |
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JDS Transformers Industries Private Limited (JTIPL) was incorporated in 1999 in Nagpur, Maharashtra, for the manufacturing of transformers. Prior to starting transformer production in July 2015, the company was involved in the manufacturing and supply of aluminium conductors. Since 2015, JTIPL has been engaged in the production of distribution transformers, power transformers, and solar inverter duty transformers. The company initially focused on 200 kVA distribution transformers. From 2022 onward, it shifted its focus to 5–10 MVA power transformers to meet changing market requirements.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Acuité has considered standalone business and financial risk profile of JTIPL to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Established track record of operations along with experienced management
JDS Transformers Industries Private Limited (JTIPL), began its operations with the manufacturing and supply of aluminium conductors. In July 2015, the company diversified into transformer production and has since been engaged in manufacturing distribution transformers, power transformers, and solar inverter duty transformers. Initially focused on 200 kVA distribution transformers, JTIPL strategically shifted its product portfolio in 2022 to cater to the growing demand for higher-capacity 5–10 MVA power transformers. JTIPL is a part of the JDS Group, which also includes KJV Alloy Conductors Private Limited and Vidarbha Alloy Conductors. KJV Alloy Conductors specializes in the production of various types of conductors such as AAC, ACSR, AAAC, and ABC, serving both domestic and international markets. Vidarbha Alloy Conductors complements the group’s capabilities by supplying insulated winding wires and undertaking tank fabrication. The group companies share common promoters. The promoters of the company Ms. Daksha Patel and Ms. Rina Patel bring over three decades of industry experience. This extensive experience coupled with established track record of operations have helped the company to forge healthy relationships with its customers and suppliers. Acuité believes that the management's extensive experience will continue to play a pivotal role in strengthening the company's business risk profile. Improving business risk profile coupled with moderate order book position JTIPL has demonstrated strong growth over the years with its operating income improving by ~51% to Rs. 116.16 Cr. in FY2025 (Prov.) as against Rs. 76.82 Cr. in FY2024 and Rs. 48.09 Cr. in FY2023, which can be attributed to higher volume of orders and its timely execution. As on May 31st 2025, JTIPL has an executable order book of Rs. 182 Cr. and L1 orders of ~Rs. 71 Cr. which provides moderate revenue visibility over medium term. The operating margin improved to 5.30 percent in FY2025 (Prov.) as against 3.62 percent in FY2024 and the PAT margin improved to 3.29 percent in FY2025 (Prov.) compared to 1.94 percent in FY2024. The improvement in the margins is driven by increased emphasis on power transformers and industrial transformers. Efficient Working capital operations The working capital operations of the company are efficient with Gross Current Assets (GCA) of 56 days in FY2025 (Prov.), compared to 70 days in FY2024. The inventory levels stood at 41 days in FY2025 (Prov.) as against 36 days in FY2024 and the debtor days improved to 9 days in FY2025 (Prov.) as against 26 days in FY2024 due to timely order completion and billing. The creditor days stood at 40 days in FY2025 (Prov.) as against 45 days in FY2024. Further, the average utilization for limits is moderate, averaging around 38% for fund-based limits over the last twelve months ending March-2025 and around 29% for non-fund based limits over the last six months ending March-2025. Going ahead, the ability of the company to maintain efficient working capital operations will remain a key monitorable. |
| Weaknesses |
| Moderate financial risk profile
The financial risk profile of the company stood moderate marked by low networth, below unity gearing and comfortable debt protection metrics. The net worth of the company stood at Rs. 9.38 Cr. as on March 31st, 2025 (Prov.), as against Rs. 5.56 Cr. as on March 31st, 2024, due to accretion of profit to reserve. The total debt of the company stood at Rs. 3.77 Cr. as on March 31, 2025 (Prov.) comprises of Rs. 0.30 Cr. of long-term debt and Rs. 3.47 Cr. of USL from Directors/Promoters. The gearing (debt-equity) of the company stood below unity at 0.40 times as on March 31, 2025 (Prov.), as against to 0.94 times as on March 31, 2024. The TOL/TNW of the company stood at 1.88 times as on March 31, 2025 (Prov.), as against 3.16 times as on March 31,2024. Further, the debt protection metrics of the company stood comfortable reflected by interest coverage ratio stood at 12.59 times for FY2025 (Prov.) as against 7.00 times for FY2024 and debt service coverage ratio of 3.59 times for FY2025 (Prov.) as against 1.48 times for FY2024. The. JTIPL is undertaking a capital expenditure of Rs 5 Cr. for research, development, and manufacturing of 17.5 MVA solar inverter duty transformers which will be completed in FY2026. The capex will be funded through a mix of ~Rs 3.47 Cr. term loan and the remaining balance through unsecured loans from the promoters. Acuité believes that the company’s ability to mark sustained improvement in its financial risk profile will remain a key monitorable over the medium term. Challenges faced by Transformer Manufacturers in India Transformer manufacturers in India face a range of complex challenges that hinder their operating efficiency and growth potential. One of the primary concerns is the volatility in the prices and availability of key raw materials such as copper, aluminium and cold rolled grain oriented (CRGO) steel which directly impacts production costs. The industry is also highly competitive with pressure from both domestic and internation manufacturers leading to aggressive pricing and shrinking profit margins. Many manufacturers operate with outdated technology and machinery which limits product quality and innovation capabilities. Furthermore, there is a persistent shortage of skilled technical personnel making it difficult to maintain consistent manufacturing standards. Compliance with increasingly stringent regulatory and energy efficiency norms to the operational burden. In addition, delayed payments from state electricity boards and public sector clients often lead to working capital constraints, disrupting the timely execution of projects. These challenges collectively create a difficult environment for sustainable growth and long-term competitiveness in both domestic and export markets. |
| Rating Sensitivities |
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Sustained improvement in scale of operation while maintaining the profitability margins. Improvement in net worth. Timely execution of orders. Consistent increase in order book. |
| Liquidity Position |
| Adequate |
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The liquidity position remains adequate, evidenced by sufficient net cash accruals offsetting maturing debt obligations. Net cash accruals ranged Rs. 1.09-4.42 Cr. between FY2023 and FY2025 (Prov.), surpassing maturing repayment obligations of Rs. 0.87-1.31 Cr. during the same period. Projections indicate adequate liquidity, with expected cash accruals ranging from Rs. 5.98-8.65 Cr. against maturing repayment obligations of Rs. 0.28-0.83 Cr. over the medium term. The cash and bank balance stood at Rs. 2.44 Cr. as on 31st March 2025 (Prov.) The current ratio has improved slightly to 1.32 times on March 31, 2025 (Prov.) from 1.18 times on March 31, 2024, affirming the company's sound liquidity position. Further, the average utilization for limits is moderate, averaging around 38% for fund-based limits over the last twelve months ending March-2025 and around 29% for non-fund based limits over the last six months ending March-2025.
Acuite believes the liquidity position of the company may continue to remain adequate with steady cash accruals and buffer available from unutilised working capital limits. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 116.16 | 76.82 |
| PAT | Rs. Cr. | 3.82 | 1.49 |
| PAT Margin | (%) | 3.29 | 1.94 |
| Total Debt/Tangible Net Worth | Times | 0.40 | 0.94 |
| PBDIT/Interest | Times | 12.59 | 7.00 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• 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 |
| Rating History : |
| Not Applicable |
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