Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 118.50 ACUITE BBB+ | Stable | Upgraded -
Bank Loan Ratings 367.00 - ACUITE A2 | Upgraded
Total Outstanding 485.50 - -
Total Withdrawn 0.00 - -
 
Rating Rationale

­Acuité has upgraded the long-term rating to 'ACUITE BBB+' (read as ACUITE triple B plus) from 'ACUITE C' (read as ACUITE C) and short-term rating to 'ACUITE A2' (read as ACUITE A two) from 'ACUITE A4' (read as ACUITE A four) on the Rs. 485.50 Cr. bank facilities of Mittal Appliances Limited. The outlook is 'Stable'. 

Rationale for upgrade
Acuite vide its rationale dated December 6th, 2024, basis the delays reported in servicing of auto loan obligation in the CRIF Highmark report of the company had downgraded the long term rating to ACUITE C and short term rating to ACUITE A4. As per CRIF report dated December 5th, 2024 delinquency for more than 900 days was captured towards Auto Loan availed by the company from January 2023 upto June 2024 (when account was closed). The concerned lender for the above mentioned loan confirmed that delinquency was reflected due to misreporting in the account and it did not pertain to the company. Upon notice the lender made the necessary corrections and instructed CRIF accordingly.
As per CRIF report dated December 23rd, 2024 no delays are being reflected in the quoted auto loan of the company. Acuite takes into cognizance the CRIF report which has been retrospectively revised.

Further the rating factors in the established track record of operations and experienced management, adequate liquidity as well as improvement in scale of operations of the group as reflected by increase in opearting income which stood at Rs.959.21 Cr. in FY2024 as against Rs.910.65 Cr. in FY2023. However, the rating remains constrained by moderate financial risk profile marked by gearing ratio which stood at 1.87 times as on 31st March 2024 and moderately intensive working capital operations marked by GCA days of 186 days as on 31st March 2024.

About the Company
­Mittal Appliances Limited is the flagship company of Mittal Group. The company was incorporated in the year 1985 as a Private Limited Company. Later, in the year 1995, the company was reconstituted as a Public Limited Company. The company is currently promoted by Mr. Dinesh Chand Mittal and Mr. Anshul Mittal. The company is engaged in manufacturing of Copper Alloy Coin Blanks, Coils, Strips made up of Copper, Nickel and Zinc which are being supplied to Government Mints for coinage purposes. The company also manufactures the Copper Alloy Strips on job work basis for Government Ordnance Factory. The manufacturing unit of the company is located at Pithampura Industrial Area, Indore, Madhya Pradesh. The company has an installed capacity for manufacturing of billets, Copper and Nickel Strips. The company also has a wind energy generator at Dewas, Madhya Pradesh for generating power captive consumption.
 
About the Group
­Mittal Group is an Indore-Madhya Pradesh based group incorporated in the year 1907. The group is into the business of manufacturing coin blanks, coins coinage material, medals, tokens and copper rolled and alloy products. The group stands to be the first company to export minted currency coins in association with the Indian Government Mints. The product line of the group includes Rs.5.00 Nickel brass Coin Blanks, Rs.10.00 and Rs.20.00 Bi-Metallic Composite Coin Blanks, Copper Billets, Copper Sheets, Copper Foils, Brass Foils, Medals, Token, badges, etc. The group has 13 companies. Out of which four are operationally active. The group companies are engaged in trading of steel scraps.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach

Extent of Consolidation
•Full Consolidation
Rationale for Consolidation or Parent / Group / Govt. Support
­Acuité has considered the consolidated business and financial risk profiles of Mittal Appliances Limited and Mittal Coin Private Limited, together referred to as 'Mittal Group (MG)'. The consolidation is in view of the common promoters, significant operational and financial synergies within the group.
Key Rating Drivers

Strengths
­Established track record of operations and experienced management
Mittal group  has an established track record of operation of more than 10 decades in the Indian Market. The group is promoted by Mittal family led by Mr. Dinesh Chand Mittal. The promoters have an experience of more than four decades in the Copper and Copper Alloy Product Industry. The extensive experience of the promoters and established track record of operation has helped the group to maintain healthy relationship with its customers and suppliers. Revenue of the group has been increasing due to healthy orders from various country's mint which is the major customer of the group. The Government releases tenders as per the requirement of coins. As this industry has limited players, probability of tender allotment is very high. Apart from these orders, the group received major portion of revenue through exports to China.

Reputed Clientele
The products of the group are extensively used for the coinage purpose. The group supplies the coin blanks majorly to the Indian and other Government Mint (export) for minting of currency coins. Besides this, the group also supplies the medals, copper billets and strips to other private entities. The other reputed clientele of the group includes name like the Indian Ordnance Factory, Royal Canadian Mint, Banco Central De Reserva Del Peru, Thai Treasury, Tata Steel and Bank of Baroda to name a few. The group has also successfully executed orders and supplied coin blanks to the government mints of countries like Argentina, Canada, France, Poland etc. Acuite believes that the group will benefit from the established client presence.

Improved Revenue and Profitability
The revenue of the group registered increase of 5.33% and stood at Rs.959.21 Cr. in FY2024 as against Rs.910.65 Cr. in FY2023. The EBITDA Margin of the group increased and stood at 5.11 % in FY2024 as compared to 3.39% in FY2023. Likewise, the PAT Margin increased to 1.46% in FY2024 from 0.82% in FY2023.

Weaknesses
­Moderate Financial Risk Profile
The financial risk profile of the group is moderate, marked by the net worth of Rs.178.35 Crores in FY2024 and Rs.166.18 in FY2023. The increase in the net-worth is on an account of accretion of profits into reserves. Further, the total debt of the group stood at Rs.333.21 Crore as on 31st March 2024 as against Rs.301.66 Crore as on 31st March 2023. The capital structure of the group is marked by gearing ratio which stood at 1.87 times as on 31st March 2024 against 1.82 times as on 31st March 2023. Further, the coverage indicators of the group are reflected by interest coverage ratio and debt service coverage ratio which stood at 1.97 times and 1.78 times respectively as on 31st March 2024 as against 1.97 times and 1.68 times respectively as on 31st March 2023. The TOL/TNW ratio of the group stood at 2.22 times as on 31st March 2024 as against 2.18 times as on 31st March 2023 and DEBT-EBITDA of the group stood at 6.01 times as on 31st March 2024 as against 9.03 times as on 31st March 2023.

Moderately Intensive Working capital operations
The working capital operations of the group are moderately intensive marked by GCA days of 186 days as on 31st March 2024 as compared to 174 days as on 31st March 2023. Further, the debtor days stood at 130 days as on 31st March 2024 as compared to 76 days as on 31st March 2023. On the other hand, the creditor days stood at 26 days as on 31st March 2024 as compared to 18 days in the previous year. The inventory days of the group stood at 47 days as on 31st March 2024 as compared to 66 days as on 31st March 2023.
Rating Sensitivities
  • ­Working capital management
  • Movement in the financial risk profile
 
Liquidity Position
Adequate
­The liquidity profile of the group is adequate with net cash accruals of Rs.22.33 Cr. as on 31st March 2024 against the debt repayment obligation of Rs.0.11 Crore over the same period. Going forward, the group is expected to generate net cash accruals under the range of Rs.25.00 Crore to Rs.29.00 Crore against the debt repayment obligations up to Rs.0.33 Crore over the same period. The current ratio of the group stood at 1.30 times as on 31st March 2024 as against 1.26 times as on 31st March 2023. Further, the cash and bank balance available with the group stood at Rs.0.82 Crore as on 31st March 2024.
 
Outlook: Stable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 24 (Actual) FY 23 (Actual)
Operating Income Rs. Cr. 959.21 910.65
PAT Rs. Cr. 14.05 7.47
PAT Margin (%) 1.46 0.82
Total Debt/Tangible Net Worth Times 1.87 1.82
PBDIT/Interest Times 1.97 1.97
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
Note on complexity levels of the rated instrument

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
06 Dec 2024 Bank Guarantee (BLR) Short Term 15.00 ACUITE A4 (Downgraded from ACUITE A2)
Letter of Credit Short Term 50.00 ACUITE A4 (Downgraded from ACUITE A2)
Bank Guarantee (BLR) Short Term 40.00 ACUITE A4 (Downgraded from ACUITE A2)
Letter of Credit Short Term 51.25 ACUITE A4 (Downgraded from ACUITE A2)
Bank Guarantee (BLR) Short Term 18.75 ACUITE A4 (Downgraded from ACUITE A2)
Letter of Credit Short Term 90.00 ACUITE A4 (Downgraded from ACUITE A2)
Letter of Credit Short Term 15.00 ACUITE A4 (Downgraded from ACUITE A2)
Bank Guarantee (BLR) Short Term 17.50 ACUITE A4 (Downgraded from ACUITE A2)
Letter of Credit Short Term 40.00 ACUITE A4 (Downgraded from ACUITE A2)
Letter of Credit Short Term 29.50 ACUITE A4 (Downgraded from ACUITE A2)
Cash Credit Long Term 20.00 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 4.00 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 1.00 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
Packing Credit Long Term 30.00 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 3.00 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
Proposed Long Term Bank Facility Long Term 0.50 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 50.00 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 10.00 ACUITE C (Downgraded from ACUITE BBB+ | Stable)
01 Apr 2024 Bank Guarantee (BLR) Short Term 18.75 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 51.25 ACUITE A2 (Downgraded from ACUITE A2+)
Bank Guarantee (BLR) Short Term 17.50 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 29.50 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 90.00 ACUITE A2 (Downgraded from ACUITE A2+)
Bank Guarantee (BLR) Short Term 15.00 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 15.00 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 40.00 ACUITE A2 (Downgraded from ACUITE A2+)
Bank Guarantee (BLR) Short Term 40.00 ACUITE A2 (Downgraded from ACUITE A2+)
Letter of Credit Short Term 50.00 ACUITE A2 (Downgraded from ACUITE A2+)
Proposed Long Term Bank Facility Long Term 0.50 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
Cash Credit Long Term 50.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
Cash Credit Long Term 20.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
Cash Credit Long Term 4.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
Cash Credit Long Term 1.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
Packing Credit Long Term 30.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
Cash Credit Long Term 10.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
Cash Credit Long Term 3.00 ACUITE BBB+ | Stable (Downgraded (Negative to Stable) from ACUITE A- | Negative)
02 Jan 2023 Cash Credit Long Term 15.00 ACUITE A- | Negative (Reaffirmed)
Cash Credit Long Term 5.00 ACUITE A- | Negative (Assigned)
Cash Credit Long Term 4.00 ACUITE A- | Negative (Reaffirmed)
Cash Credit Long Term 1.00 ACUITE A- | Negative (Reaffirmed)
Packing Credit Long Term 30.00 ACUITE A- | Negative (Reaffirmed)
Cash Credit Long Term 2.50 ACUITE A- | Negative (Reaffirmed)
Cash Credit Long Term 7.50 ACUITE A- | Negative (Assigned)
Cash Credit Long Term 3.00 ACUITE A- | Negative (Assigned)
Proposed Long Term Bank Facility Long Term 0.50 ACUITE A- | Negative (Reaffirmed)
Cash Credit Long Term 50.00 ACUITE A- | Negative (Reaffirmed)
Letter of Credit Short Term 20.50 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 19.50 ACUITE A2+ (Assigned)
Bank Guarantee (BLR) Short Term 40.00 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 29.50 ACUITE A2+ (Reaffirmed)
Bank Guarantee (BLR) Short Term 15.00 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 33.75 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 17.50 ACUITE A2+ (Assigned)
Bank Guarantee (BLR) Short Term 18.75 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 90.00 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 12.50 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 2.50 ACUITE A2+ (Assigned)
Bank Guarantee (BLR) Short Term 17.50 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 50.00 ACUITE A2+ (Assigned)
04 Mar 2022 Cash Credit Long Term 5.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 11.50 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 1.00 ACUITE A- | Stable (Reaffirmed)
PC/PCFC Long Term 40.00 ACUITE A- | Stable (Reaffirmed)
Cash Credit Long Term 2.50 ACUITE A- | Stable (Reaffirmed)
Letter of Credit Short Term 20.50 ACUITE A2+ (Reaffirmed)
Bank Guarantee (BLR) Short Term 50.00 ACUITE A2+ (Reaffirmed)
Bank Guarantee (BLR) Short Term 15.00 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 33.75 ACUITE A2+ (Reaffirmed)
Bank Guarantee (BLR) Short Term 18.75 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 45.00 ACUITE A2+ (Reaffirmed)
Bank Guarantee (BLR) Short Term 17.50 ACUITE A2+ (Reaffirmed)
Letter of Credit Short Term 120.00 ACUITE A2+ (Reaffirmed)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
UCO Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
ICICI Bank Ltd Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
Axis Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.75 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.50 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
Kotak Mahindra Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
UCO Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
UCO Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 29.50 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
Axis Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 51.25 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
HDFC Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 90.00 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
ICICI Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
Kotak Mahindra Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A2 | Upgraded ( from ACUITE A4 )
ICICI Bank Ltd Not avl. / Not appl. Packing Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE BBB+ | Stable | Upgraded ( from ACUITE C )
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr.No Company Name
1 Mittal Appliances Limited
2 Mittal Coin Private Limited
 

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