Press Release

Press Release

August 07, 2025

M S INFRAENGINEERS PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	52.00	ACUITE BBB+ \| Stable \| Assigned	-
Bank Loan Ratings	48.00	ACUITE BBB+ \| Stable \| Reaffirmed	-
Bank Loan Ratings	80.00	-	ACUITE A2 \| Assigned
Bank Loan Ratings	50.00	-	ACUITE A2 \| Reaffirmed
Total Outstanding	230.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BBB+’ (read as ACUITE triple B Plus) and the short-term rating of ‘ACUITE A2’ (read as ACUITE A Two) on the Rs.98.00 crore bank facilities of M S Infraengineers Private Limited (MSIL). The outlook is ‘Stable’.

Acuité has assigned the long-term rating of ‘ACUITE BBB+’ (read as ACUITE triple B Plus) on the Rs.52.00 crore bank facilities and short-term rating of ‘ACUITE A2’ (read as ACUITE A Two) on Rs.80 crore bank facility of M S Infraengineers Private Limited (MSIL). The outlook is ‘Stable’.

Rationale for Rating
The reaffirmation of the rating reflects the company’s stable business and financial risk profile evidenced by improvement in scale of operations backed by the healthy execution of its order book. This growth in revenue is expected to be sustained in the medium term, supported by a current executable order book position of Rs.1362 crore as of June 2025. Furthermore, the company’s financial risk profile remains healthy, marked by a robust net worth, moderate gearing, and comfortable debt protection metrics. The rating also factors in experienced management and long operational track record of the company in EPC business. However, these strengths are partially offset by working capital-intensive nature of operations, geographical concentration risk and susceptibility of profitability to volatility in input prices in a cyclical and competitive construction sector.

About the Company

M S Infraengineers Private Limited (MSIL) was incorporated in the year 2011 as a Super Class Civil Contractor in Cuttack, Odisha. The company is promoted by Mr. Mahendra Swain and Mr. Ajit Kumar Swain. In 1976 Mr. Swain has started his civil firm, under his leadership the firm has executed many civil engineering projects like DAMs, Spill ways, Canals, roads, bridges, and national highways. Further, in 2011, the firm has been converted from individual capacity to a Private Limited company. The company has a team of technical personnel including engineers with strong Human Resources and latest Machineries which enabled the company to complete awarded projects on time.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of MSIL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and established relationship with customers
Mr. Mahendra Swain, managing director of MSIL, has over four decades of experience in the construction industry. His son Ajit Kumar Swain also has over a decade of experience in the construction industry. The promoters are well assisted by an experienced team of professionals with considerable experience in the construction industry. Further, being in civil construction works since 1976, MSIL, has a considerable experience and a proven track record. The company has successfully completed many projects in and around Odisha for various government departments. The long-standing experience of the promoter and long track record of operations has helped him to establish comfortable relationships with key suppliers and reputed customers. Acuité derives comfort from the long experience of the management and believes this will benefit the company going forward, resulting in steady growth in the scale of operations.

Sound business risk profile supported by healthy order book position
The company continues to demonstrate a stable and resilient business risk profile, supported by consistent growth in operating revenue, which stood at Rs.449.99 crore in FY25 (Prov.), compared to Rs.357.90 crore in FY24 due to timely execution of orders. In Q1FY26, MSIL reported revenue of ~ Rs.136 crore, including Rs.35 crore of unbilled revenue. As of June 2025, the company maintains a robust unexecuted order book of Rs.1,362.55 crore, which gives revenue visibility over the medium term. The work orders remain predominantly government-focused, with 97 per cent sourced from central agencies such as NHAI and MoRTH, and the remaining 3 per cent from state government bodies. Operating margins have remained healthy at 16.16 per cent in FY25 (Prov.), while PAT margins stood at 7.75 per cent, supported by the execution of projects with favourable cost structures. Its clientele includes key government organizations such as NHAI, MoRTH, PWD, National Highways Logistics Management Ltd., and other public sector corporations. Acuite believes, the operating performance of the company would remain comfortable over the medium term on account of healthy order book position.

Healthy Financial Risk Profile
The company maintains a healthy financial risk profile, marked by a strong net worth, moderate gearing, and adequate debt protection metrics. As of FY25 (Prov), tangible net worth stood at Rs.131.47 crore, compared to Rs.96.75 crore in FY24, primarily supported by the retention of profits. Total debt stood at Rs.142.59 crore as on March 31, 2025 (Prov.), comprising of Rs.66.38 crore of long-term borrowings, Rs.52.60 crore of short-term debt, and Rs.23.60 crore as current portion of long-term debt (CPLTD). The company bought construction equipment in line with the growing order book. Gearing remained moderate and stood at 1.08 times as on March 31, 2025 (Provisional), compared to 0.90 times in the previous year. Debt protection metrics remained comfortable, with the Interest Coverage Ratio (ICR) at 5.37 times and the Debt Service Coverage Ratio (DSCR) at 1.75 times in FY25 (Prov), reflecting a marginal moderation due to increased finance costs. The Debt-to-EBITDA ratio stood at 1.90 times in FY25 (Prov), compared to 1.50 times in FY24, while Net Cash Accruals to Total Debt (NCA/TD) stood at 0.35 times, compared to 0.45 times in the previous year.

Acuite believes the financial risk profile will remain healthy over the near to medium term, supported by steady augmentation in net cash accruals and the absence of any major debt-funded capex plans.

Weaknesses

Susceptibility of operating margin to volatile input prices and intense competition
Major raw materials used in civil construction activities are steel & cement and in road construction activities are stone, asphalt/bitumen and sand which are usually sourced from large players/dealers at proximate distances. The raw material & labour cost forms the majority chunk of the total cost of sales for the last three years. As the raw material prices & labour cost are volatile in nature, the profitability of the company is subject to fluctuation in raw material prices & labour cost. However, the company has an in-built price variation clause for major raw materials like cement, bitumen & steel in majority of its contracts which protects its margin to an extent.

Intensive Working Capital Operations
The company’s operations remained working capital intensive, reflected in Gross Current Assets (GCA) of 188 days in FY25 (Prov.), compared to 192 days in FY24. The elevated GCA days are primarily attributed to significant earnest money deposits, fixed deposit receipts pledged against EMDs, and retention money held by tendering authorities. The debtor collection period showed notable improvement, standing at 51 days in FY25 (Prov.) from 120 days in FY24. Inventory days remained stable at 3 days for both FY25 (Prov.) and FY24. Creditor days stood at 162 day in FY25 (Provisional), compared to 292 days in the previous year. The company’s fund-based working capital limits remained utilized at around 80 per cent, while non-fund-based limits were utilized at ~75 per cent over the 12 months ended June 2025, reflecting consistent operational demand and financial discipline. Acuité believes that the operations of the company will remain working capital intensive in the medium term due to the nature of business.

Rating Sensitivities

Scaling up of operations while maintaining their profitability margin
Timely execution of orders
Deterioration in the working capital operations
Sustenance of existing financial risk profile with healthy capital structure

Liquidity Position

Adequate

The company maintains an adequate liquidity position, supported by sufficient net cash accruals of Rs.49.53 crore in FY25 (Prov.) against maturing debt obligations of Rs.22.34 crore during the same period. The company is expected to generate cash accruals in the range of Rs.60.91–Rs.73.97 crore in FY26-FY27, comfortably covering its repayment obligations estimated between Rs.20.15–Rs.23.60 crore. Working capital requirements remain intensive, as reflected in Gross Current Assets (GCA) days of 188 day in FY25 (Prov.), compared to 192 days in FY24. The company’s fund-based working capital limits remained utilized at around 80 per cent, while non-fund-based limits were utilized at approximately 75per cent over the 12 months ended June 2025. As of March 31, 2025 (Prov), the company held unencumbered cash and bank balances of Rs.0.77 crore. The current ratio stood at 1.40 times, compared to 1.08 times as of March 31, 2024. Going forward, liquidity is expected to remain adequate, supported by healthy accrual generation and the absence of any major debt-funded capital expenditure plans.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	449.99	357.90
PAT	Rs. Cr.	34.87	27.44
PAT Margin	(%)	7.75	7.67
Total Debt/Tangible Net Worth	Times	1.08	0.90
PBDIT/Interest	Times	5.37	5.97

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
08 Oct 2024	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	15.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	19.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	11.00	ACUITE A2 (Reaffirmed)
	Cash Credit	Long Term	1.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	8.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	18.75	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	11.25	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	9.00	ACUITE BBB+ \| Stable (Reaffirmed)
21 May 2024	Bank Guarantee (BLR)	Short Term	19.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A2 (Upgraded from ACUITE A3+)
	Bank Guarantee (BLR)	Short Term	15.00	ACUITE A2 (Assigned)
	Bank Guarantee (BLR)	Short Term	11.00	ACUITE A2 (Assigned)
	Cash Credit	Long Term	1.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	18.75	ACUITE BBB+ \| Stable (Upgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	11.25	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	9.00	ACUITE BBB+ \| Stable (Assigned)
15 Mar 2023	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A3+ (Assigned)
15 Mar 2023	Cash Credit	Long Term	18.75	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A2 \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	26.00	Simple	ACUITE A2 \| Reaffirmed
Axis Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	19.00	Simple	ACUITE A2 \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A2 \| Assigned
Canara Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE A2 \| Assigned
UCO Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A2 \| Assigned
HDFC Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	45.00	Simple	ACUITE A2 \| Assigned
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	27.75	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Axis Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.25	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Canara Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB+ \| Stable \| Assigned
HDFC Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB+ \| Stable \| Assigned
UCO 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 \| Assigned
Bank of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Oct 2028	8.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Bank of Baroda	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Oct 2028	22.00	Simple	ACUITE BBB+ \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

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