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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 42.04 | ACUITE A | Reaffirmed & Withdrawn | - |
| Bank Loan Ratings | 6.51 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 48.55 | - | - |
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Rating Rationale |
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Acuite has reaffirmed and withdrawn the long-term rating of ‘ACUITE A’ (read as ACUITE A) on the Rs. 42.04 Cr. bank facilities of N R TMT India Private Limited. The rating has been withdrawn on account of the request received from the issuer along with No objection certificate received from the lender.
Acuite has also withdrawn its long-term rating on the bank loan facilities of Rs.2.80 Cr. bank facilities of N R TMT India Private Limited without assigning any rating as the instrument is fully repaid. The rating has been withdrawn on account of the request received from the issuer along with No Due certificate received from the lender. Further, Acuité has withdrawn its long-term rating on the bank loan facilities of Rs.3.71 Cr. bank facilities of N R TMT India Private Limited without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for rating The rating takes into account the sound business risk profile of the group majorly driven by improvement in revenue and profitability. The consolidated revenue from operations of the group increased and is estimated around Rs.2000 Cr. in FY2025 as against Rs.1545.87 Cr. in FY2024 and Rs.1506.36 Cr. in FY2023. Furthermore, the EBITDA and PAT margin of the group stood at 14.87 per cent and 8.46 per cent respectively in FY2024. In addition, the financial risk profile of the group is healthy marked by a healthy net worth, moderate gearing levels and comfortable debt protection metrics and working capital management is efficient marked by Gross Current Assets days (GCA days) of 82 days for FY2024. The rating also draws comfort from established track record and skilled promoters with location advantage along with integrated nature of operations. However, these strengths are partially offset by cyclical nature of the steel industry and the vulnerability of the margins to the volatility in steel prices. |
| About the Company |
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N R TMT India Private Limited was incorporated in 2008 in Chhattisgarh. The company is engaged in the manufacturing of billet and TMT bars. The present directors of the company are Mr. Vijay Kumar Agrawal, Mr. Ankit Agrawal and Mr. Vikas Agrawal.
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| About the Group |
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NRVS Steels Limited (Erstwhile Seleno Steels Limited)
NRVS Steels Limited (erstwhile Seleno Steels Limited) (NRVS) was incorporated in 2001 in Chhattisgarh and is engaged in the manufacturing of sponge iron, billet and TMT Bars. The present directors of the company are Ms. Anju Agrawal, Mr. Chandan Poddar, Mr. Vijay Kumar Agrawal, Mr. Mayank Agrawal, Mr. Ankit Agrawal, Mr. Sunil Kumar Jindal and Mr. Pawan Kumar Agrawal. NR Steel and Ferro Private Limited NR Steel and Ferro Private Limited (NRSF) was incorporated in August 2020 in Chhattisgarh. The company has undertaken a Greenfield project to set up a manufacturing unit that will produce pig iron and billet. The present directors of the company are Mr. Ravi Kumar Gupta, Mr. Sanjay Agrawal and Mr. Shubham Agrawal. The company is engaged in the manufacturing of billets, Silico Manganese and Pig Iron. N R Ispat and Power Private Limited N R Ispat and Power Private Limited (N R Ispat), the flagship company of the group was incorporated in 2008 in Chhattisgarh and is engaged in the manufacturing of sponge iron, billet and TMT bars. The company sells TMT under the brand name ‘Dollar Gold’. The present directors of the company are Mr. Sanjay Agrawal, Mr. Rajesh Kumar Agrawal, Mr. Shubham Agrawal and Mr. Mohit Kumar Mishra. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has considered the consolidated financials of N R Ispat and Power Private Limited, N R TMT India Private Limited, NRVS Steels Limited and NR Steel and Ferro Private Limited. The consolidation is in the view of common management, Intergroup purchase and sale, strong operational linkages between the entities and a similar line of business. |
| Key Rating Drivers |
| Strengths |
| Established track record of operations along with integrated nature of operations
The promoters of the group have been associated with the iron & steel industry for about two decades. The group has integrated operations with capacities to produce sponge iron, steel billets and long products across its companies – N R Ispat, N R TMT, NRVS and NRSF. Acuité derives comfort from the long experience of the promoters. In addition to this, the group has a locational advantage as the plants are located in the industrial area of Raipur, Chhattisgarh, which is in close proximity to various steel plants and sources of raw materials. Further, the plants are well connected through road and rail transport which facilitates easy transportation of raw materials and finished goods. Strong Business Risk Profile The business risk profile of the group is strong supported by the integrated nature of operations of the group which enhances the operating efficiencies and mitigates the risks arising from the cyclical nature of steel industry to some extent. The diversity in revenue streams of the group also augurs well with its business risk profile. The revenue of the group has improved and is estimated around Rs.2000 Cr. in FY2025 as against Rs.1545.87 Cr. in FY2024 and Rs.1506.36 Cr. in FY2023. Moreover, the operating margin of the group increased to 14.87 per cent in FY2024 as compared to 11.39 per cent in FY2023. Likewise, the profitability margin stood at 8.46 per cent in FY2023 as against 5.97 per cent in FY2023. The improvement in margins is attributed to enhanced operational efficiencies on account of backward integration, improved procurement efficiencies and cost rationalization. Healthy Financial Risk Profile The group’s financial risk profile is marked by healthy networth, moderate gearing and comfortable debt protection metrics. The tangible net worth of the group increased to Rs.493.73 Cr as on March 31, 2024 from Rs.333.54 Cr as on March 31, 2023 due to accretion of profits into reserves. The capital structure of the group is marked by gearing which stood moderate at 1.54 times as on March 31, 2024 as against 1.25 times as on March 31, 2023. The debt protection metrics remained comfortable marked by interest coverage ratio (ICR) of 8.23 times and debt service coverage ratio (DSCR) of 2.92 times for FY2024. Further, the net cash accruals to total debt (NCA/TD) stood at 0.23 times in FY2024 as against 0.31 times in FY2023 and Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.72 times as on March 31, 2024 as against 1.53 times as on March 31, 2023. Efficient Working Capital Management The working capital management of the group is efficient marked by Gross Current Assets (GCA) of 82 days for FY2024 as compared to 73 days for FY2023. The efficient level of GCA days are mainly on account of inventory days and minimal receivables. The inventory days of the group stood at 45 days in FY2024 as compared to 38 days in FY2023. Further, the debtor days of the group stood at 8 days for FY2024 as against 13 days for FY2023. Against this, the group has minimal creditors, which stood at 9 days as on March 31, 2024. Further, the group relies on its bank lines to meet its working capital requirement which stood utilised at 82.40% over last six months ended March 2025. |
| Weaknesses |
| Cyclical nature of the steel industry to the volatility in steel prices
The steel rolling sector continues to lack organization and cohesion. The group faces strong competitive forces from both organized and unorganized participants, compounded by the cyclicality inherent in the steel industry. Moreover, the government’s emphasis on steel intensive sectors like railways and infrastructure increases vulnerability, any prolonged drop in demand would negatively affect steel group’s performance. Furthermore, the fluctuation in prices of raw materials and goods is considerably unstable, making this a crucial aspect to watch. |
| ESG Factors Relevant for Rating |
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The iron and steel production industry has a substantial environmental impact. The processes are power-intensive so as part of ongoing commitment to environmental sustainability, NR Group undertook tree plantation initiative and planted 5000 trees which endeavour aids in combating deforestation and mitigating the impacts of climate change. The group has also taken a significant step towards shifting to renewable energy wherein they have collaborated with local partners to set up a state-of-the-art solar power generation plant. From the governance perspective, factors such as ethical business practices, management compensation and board functioning hold primary importance to the group. Likewise, regulatory compliance, shareholder’s rights and audit control are other material issues. NR Group is dedicated to making a positive impact on society. Workforce health & safety management, inclusive development and human rights concerns are of primary importance, given the nature of operations. The prime example is the establishment and management of asocial work hospital along with initiation of the NR Public School aiming to provide accessible education to the children of their workers and the local community
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| Rating Sensitivities |
| Not Applicable |
| Liquidity Position |
| Adequate |
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The group has adequate liquidity marked by net cash accruals of Rs.171.55 Cr. as on March 31, 2024 as against Rs.39.45 Cr. of debt obligations over the same period. The current ratio of the group stood comfortable at 1.12 times in FY2024. The cash and bank balance stood at Rs.0.91 Cr for FY2024. Further, the group relies on its bank lines to meet its working capital requirement which stood utilised at 82.40% over last six months ended March 2025.
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| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 1545.87 | 1506.36 |
| PAT | Rs. Cr. | 130.76 | 89.86 |
| PAT Margin | (%) | 8.46 | 5.97 |
| Total Debt/Tangible Net Worth | Times | 1.54 | 1.25 |
| PBDIT/Interest | Times | 8.23 | 6.77 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite) |
| Not applicable |
| Any Other Information |
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Provisions of Chapter IV, Regulations 15 to 27 of SEBI (LODR) Regulations, 2015 apply to a listed entity which has listed its non-convertible debt securities and has an outstanding value of listed non-convertible debt of Rupees Five Hundred Crore and above.
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| Applicable Criteria |
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• 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 |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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