|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 135.00 | ACUITE A- | Negative | Assigned | - |
| Bank Loan Ratings | 262.25 | ACUITE A- | Negative | Reaffirmed | - |
| Bank Loan Ratings | 5.15 | - | ACUITE A2+ | Reaffirmed |
| Total Outstanding | 402.40 | - | - |
| Total Withdrawn | 0.00 | - | - |
|
Rating Rationale |
|
Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and short term rating of 'ACUITE A2+'(read as ACUITE A two plus) on the Rs. 267.40 Cr. bank facilities of Maharashtra Solvent Extraction Private Limited (MSEPL). The outlook remains 'Negative'.
Further, Acuité has assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 135.00 Cr. bank facilities of Maharashtra Solvent Extraction Private Limited (MSEPL). The outlook is 'Negative'. Rationale for rating The rating outlook continuous to remain ‘Negative’ on the back of expansion of trading operations which are expected to suppress profitability thereby further expected to moderate the financial risk profile. The rating reaffirmation reflects augmentation in operating performance, management’s extensive experience, group’s established track record of operations and moderate financial risk profile. The rating is, however, restrained on account of thin operating and net profitability margins along with susceptibility of the group’s revenues to any volatility in pricing and demand or supply of agro-based raw materials. Acuité believes that sustenance of scale of operations and any deterioration in the financial risk profile along with profitability margins will continue to remain key monitorable. |
| About the Company |
|
Maharashtra Solvent Extraction Private Limited (MSEPL) was incorporated in 2004 at Mumbai. Its current directors are Mr. Anil Dwarkadas Agrawal, Mr. Rajwardhan Raghujirao Kadambande, Mr. Sanjay Kashinath Agrawal and Mr. Kamlesh Prasad Sinha. The company is primarily engaged in soya bean crushing, extraction of crude soya bean oil and soya bean de oiled cake. It is also engaged in trading of soya bean de oiled cake and yellow corn which is used as feed for poultry. MSEPL procures its raw materials from local farmers in Maharashtra and Madhya Pradesh. Maharashtra Solvent Extraction Private Limited caters primarily to the domestic market and is also engaged in the export of de-oiled cake.
|
| About the Group |
|
Mumbai based Sanjay Soya Private Limited (SSPL) was incorporated in 2004. The current directors are Mr. Vinod Dwarkadas Agrawal and Mr. Dhiraj Vinodkumar Agrawal. SSPL is primarily engaged in the business of refining of soya bean oil,sunflower and cotton seed oil. The company started with refining of sunflower oil in FY2018. It procures its raw materials from various local players as well as imports and also from its group company Maharashtra Solvent Extraction Private Limited (MSEPL). SSPL markets its refined cotton seed oil under the brand name ‘Sanjay Supreme’, refined soyabean oil under the brand name ‘Soya Drop’ and refined sunflower oil under the brand name 'Supreme Sunshine'. SSPL sells its product to various local players and does bulk sales to retail food chains including Haldiram Foods International Limited and Marico Limited. |
| 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 Maharashtra Solvent Extraction Private Limited (MSEPL) and Sanjay Soya Private Limited (SSPL) together referred to as the ‘Sanjay Soya Group’ (SSG). The consolidation is in view of the common management and strong operational and financial linkages between the entities. |
| Key Rating Drivers |
| Strengths |
| Established track record of operations and experienced promoters
SSG was established by common promoters in 2004. Its day-to-day operations are managed by Mr. Sanjay Agrawal and Mr. Anil Agrawal. The promoters have extensive experience of around four decades in the same line of business. MSEPL is engaged in the business of soya bean crushing, extraction of crude soya bean oil and soya bean de-oiled cake. It is also engaged in the trading of soya de-oiled cake and yellow corn while SSPL is engaged in refining of soya bean oil, sunflower oil and cotton seed oil. The group has been in operations for over a decade and has an established operational track record. This along with the promoters’ extensive experience has helped the group establish stable relationships with suppliers as well as clients and maintain its scale of operations. Some of the group’s major customers include Haldiram Foods International Limited, Marico Limited, and Chordia Food Products Limited Acuité believes that the group will continue to benefit through the promoters’ extensive industry experience over the medium term and established track record of operations. Augmentation in operating performance The group reported revenue of Rs. 3,441.58 Cr. in FY25 (Prov), reflecting a growth of 18.41 per cent over FY24, where revenue had moderated to Rs. 2,906.42 Cr. in FY24 due to price related challenges impacted the industry. The trading segment continued to expand its share, accounting for ~80 per cent of revenue in FY25 (prov.) as compared to 58 per cent in FY23, which is expected to expand in FY26 & FY27. Further, the gross revenue (without considering interparty transactions) in Q1FY26 of the group stood at Rs.2,074.16 Cr. The profitability margins improved as EBITDA and PAT margins stood at 1.78 per cent and 0.66 per cent respectively in FY25 (prov.) as against 1.54 per cent and 0.44 per cent respectively in FY24. The Group’s operating performance going forward will depend on price stability in edible oil and DOC, revenue mix and operational efficiency in manufacturing and its impact on revenues and profitability would remain as a key rating monitorable. Efficient working capital management The group’s working capital cycle remained efficient in FY25 (Prov.), with Gross Current Assets (GCA) at 79 days in FY25 (Prov.) as against 80 days in FY24. Inventory days stood at 36 days in FY25 (prov.) as compared to 34 days in FY24, while debtor days stood at 36 days during the same period. The credit period extended to customers continued in the range of 15 to 40 days. The creditor days stood at 7 days in FY25 (prov.) as compared to 10 days in FY24. Further, the consolidated bank limit utilisation stood moderate at ~58 per cent for the period ending June 2025. |
| Weaknesses |
| Moderate Financial risk profile |
| Rating Sensitivities |
|
| Liquidity Position |
| Strong |
|
The group’s liquidity profile remained Strong, supported by moderate reliance on working capital. Net cash accruals stood at Rs. 28 Cr. in FY25 (Prov.), comfortably covering repayment obligations of Rs. 3.17 Cr. during the same period. The company maintains unencumbered cash and bank balances of ~3.00 cr. in FY25 (prov.) Further, the consolidated bank limit utilisation stood moderate at ~58 per cent for the period ending June 2025. further, the current ratio of the group stood at 1.37 times in FY25 (prov.) Acuité expects the group to maintain its liquidity position, backed by sufficient cushion in accruals and unutilized bank lines.
|
| Outlook: Negative |
| |
| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 3441.58 | 2906.42 |
| PAT | Rs. Cr. | 22.80 | 12.69 |
| PAT Margin | (%) | 0.66 | 0.44 |
| Total Debt/Tangible Net Worth | Times | 2.11 | 2.02 |
| PBDIT/Interest | Times | 2.41 | 1.92 |
| 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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on complexity levels of the rated instrument |
|
| |
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
|
||||||
|
Contacts |
About Acuité Ratings & Research |
