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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 41.05 | ACUITE A+ | Stable | Assigned | - |
| Bank Loan Ratings | 5.40 | ACUITE A+ | Stable | Upgraded | - |
| Bank Loan Ratings | 48.70 | - | ACUITE A1+ | Assigned |
| Bank Loan Ratings | 72.50 | - | ACUITE A1+ | Upgraded |
| Total Outstanding | 167.65 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has upgraded its long-term rating to ‘ACUITE A+’ (read as ACUITE A plus) from ‘ACUITE A’ (read as ACUITE A) and the short-term rating to ‘ACUITE A1+’ (read as ACUITE A one plus) from ‘ACUITE A1’ (read as ACUITE A one) on the Rs. 77.90 Cr. bank facilities Rite Water Solutions India Limited (Erstwhile Rite Water Solutions India Private Limited) (RWSIL). The outlook is 'Stable'.
Acuite has assigned its long-term rating of ‘ACUITE A+’ (read as ACUITE A plus) and the short-term rating of ‘ACUITE A1+’ (read as ACUITE A one plus) on the Rs. 89.75 Cr. bank facilities Rite Water Solutions India Limited (Erstwhile Rite Water Solutions India Private Limited) (RWSIL). The outlook is 'Stable'. Rationale for rating Upgrade The rating upgrade considers the improvement in business risk profile of the group marked by substantial improvement in the operating income. The rating also draws comfort from the experience management, healthy financial risk profile marked by healthy net worth, low gearing and strong debt protection metrics, along with its strong liquidity position. The rating also takes note of the anticipated infusion of funds through the proposed IPO. The rating is however constrained by the intensive working capital nature of operations of the group, exposure to intense competition and inherent risks due to tender-based operations. |
| About the Company |
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Nagpur based, Rite Water Solutions India Limited (RWSIL) was incorporated in 2004 and is engaged in the business of setting up of safe drinking water plants by way of establishing Community Water Centers and Water ATMs. These water treatment plants are based on clean technologies and products developed for removal of chemical contaminants from ground water. The company has its manufacturing unit located in Nagpur (Maharashtra). RWSIL has established its base by setting up water treatment plants across ~21,807 villages in 12 states through associations with the concerned water departments of the state governments. RWSIL has recently started with solar agriculture solutions, and IoT solutions. The company has been working in rural areas across several states, primarily in the water sector. They decided to leverage their expertise to scale up their solutions, focusing on rural India and remote areas. This led them to enter the solar scheme, which is rural dominated. The company execute these contracts on EPC basis. The directors of the company are Mr. Vinayak Shankarrao Gan, Mr. Abhijeet Vinayak Gan, Ms. Khushboo Anish Pasari, Mr. Vinod Kumar Verma, Mr. Ashutosh Prabhakar Joshi and Ms. Aparna Krishnakant Pittie.
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| About the Group |
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Rite Water group (RWG) have been executing projects under Jal Jeevan Mission (JJM) which was launched by the Govt. of India in order to enable every household and public institutions, viz. Gram Panchayat (GP) building, school, Anganwadi centre, health centre, wellness centre etc. in the villages to have Functional Household Tap Connection (FHTC). It is envisaged that with FHTC, each household will have potable water supply in adequate quantity (i.e. 9131 installations with ~62.7 litres of purified water everyday) of prescribed quality (i.e. BIS 10500) on regular and on a long-term basis. As a part of JJM Maharashtra program, for ensuring regular and effective chlorination at sites it has been decided by SWSM Maharashtra to install electro-chlorination systems across existing as well as upcoming single villagewater supply schemes (SVS) under JJM. They have also stated executing projects Namami Gange, and have also installed 8736+ solar pumps under the Pradhan Mantri Kusum Yojna.
Rite Water Lake City LLP Rite Water Lake City LLP is a Limited Liability Partnership firm established in the year 2018 in Maharashtra. The company is engaged in the business of setting up safe water drinking plants by way establishing community water plants, water treatment plants and water ATMs. This partnership is formed between RWSIL and Ms. Krupali Ganesh Wagh. RWSIL, as a corporate partner, is represented by Mr. Abhijeet Gan Sir. Clintech Equipments and Solutions Private Limited Maharashtra based, Clintech Equipments and Solutions Private Limited was incorporated in 2023. The directors of the company are Mr. Vinayak Shankarrao Gan, Mr. Abhijeet Vinayak Gan and Ms. Khushboo Anish Pasari. The company is engaged in the business of manufacturing /assembling equipments in Clean Tech space. |
| 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 three entities including Rite Water Solutions India Limited (RWSIL) (holding company), Rite Water Lake City LLP (controlled entity) and Clintech Equipments and Solutions Private Limited (wholly owned subsidiary) to arrive at the rating due to common management and similar business profile.
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| Key Rating Drivers |
| Strengths |
| Established presence in the industry with extensive promoter’s experience
RWSI enjoys the leadership position in the Indian market on account of specialized technology in potable water and water quality improvement solutions. RWSIPL has recently started with solar agriculture solutions and IoT solutions. The company has been working in rural areas across several states, primarily in the water sector since many years. It plans to leverage this expertise to scale up their solar and IOT solutions in these areas. The company is promoted by Mr. Vinayak Gan and Mr. Abhijeet Gan, with Mr. Abhijeet Gan serving as Managing Director & Chief Executive Officer (MD & CEO) and Mr. Vinayak Gan as Whole-Time Directorwith over three decades of experience in entrepreneurship and business management. In the past, he has been associated with Candy Filters (I) Private Limited as a project engineer for design and erection of water treatment plants and Steel Authority of India Limited for seven years. Mr. Vinayak Gan is supported by his son, Mr. Abhijeet Gan (CEO). Acuité believes with its leadership position through specialized technology in potable water and water quality improvement solution will aid the group in scaling up in its new segments and establish new centres in various states. Improvement in scale of operations along with healthy profitability margins The revenue of the group improved to Rs. 506.48 Cr. in FY25 as compared to Rs. 202.93 Cr. in FY24 and Rs. 119.43 Cr. in FY23 reflecting a growth of 149.58 per cent and 69.91 per cent respectively during the period. Furthermore, the group has witnessed considerably higher revenue in H1FY26 compared to H1FY25.. The growth was majorly on account of higher execution of orders during the period. The group has an unexecuted order book position of ~Rs. 1723.13 Cr. as on 31st December 2024, and its order book position had remained strong going. The group has expanded into IOT and solar agriculture solutions over the near to medium term. Out of total outstanding orderbook, around Rs. 754.58 Cr. comprises of solar agriculture solutions, Rs. 487.07 Cr. of other water solutions and Rs. 481.48 Cr IOT orders. The operating profit of the group improved and stood at Rs.135.01 Cr. in FY25 as against Rs. 70.87 Cr. in FY24 and Rs. 35.99 Cr. in FY23. Furthermore, the operating profit margin stood at 26.66% in FY25 as compared against 34.92% in FY24 and 30.13% in FY23. The decline in operating margin is due to foray into Solar project, wherein the Raw Material Cost is higher. The PAT improved to Rs. 98.73 Cr. in FY25 against Rs.49.48 Cr. in FY24 and Rs. 26.78 Cr. in FY23. The PAT margins of the group stood at 19.49% in FY25 as compared to 24.38% in FY24 and 22.42% in FY23. Acuité believes that RWSIL will continue to benefit from extensive experience of the promoters and healthy order book position of the group over the medium term. Healthy Financial Risk Profile The group has a healthy financial risk profile marked by healthy net worth, low gearing and strong debt protection metrics. The tangible net worth of the group rose to Rs. 338.88 Cr. in FY25 as compared to Rs. 239.96 Cr. in FY24 due to accretion of profits to reserves. The group has filed DRHP wherein the primary raise is Rs. 300 cr. If it fructifies, it is likely to support the group’s working capital requirements and further improve its financial risk profile. This investment will reduce the group’s reliance on fund based working capital facilities availed from the bank. The gearing of the group remained low at 0.14 times in FY25 as compared to 0.08 times in FY24. The total debt of the group stood at Rs. 45.77 Cr. as on 31st March 2025 as against Rs. 18.65 Cr. as on 31st March 2024. The TOL/TNW also stood at 0.37 times as on 31st March 2025 as against 0.24 times as on 31st March 2024. The debt protection metrics improved with debt service coverage ratio of 25.87 times and interest coverage ratio stood at 41.95 times in FY25 as against 20.45 times and 35.50 times in FY24 respectively. Acuité believes that the financial risk profile of RWSIPL is expected to remain healthy on account of steady accruals and conservative leverage policy. |
| Weaknesses |
| Intensive working capital operations
The group has intensive working capital nature of operations marked by gross current assets (GCA) of 270 days for FY25 as compared against 343 days for FY24. The high GCA days is majorly on account of high receivable days of 124 days for FY25 as against 65 days in FY24. The inventory levels of the group at 51 days in FY25 due to high level of inventory of solar pumps compared against 57 days for FY24. The creditor days of the group stood at 94 days for FY25 as against 144 days for FY24. Further, the average utilization of fund-based limits moderate at ~67.26% in last twelve months ended June’ 2025. Acuité believes that the operations of the group will continue to remain moderately intensive on account of high receivable days over the medium term. Susceptibility of profitability to tender-based operations Revenue and profitability depend entirely on the ability to win tenders. Entities in this segment face intense competition, thus requiring them to bid aggressively to procure contracts; this restricts the operating margin to a moderate level. Also, given the cyclicality inherent in water treatment industry, the ability to maintain profitability margin through operating efficiency becomes critical. Acuité believes that the company’s business profile and financial profile can be adversely impacted on account of presence of stiff competition and has inherent risk of susceptibility to tender based operations.
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| Rating Sensitivities |
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Substantial improvement in scale of operations
Change in financial risk profile Elongation of the working capital cycle |
| Liquidity Position |
| Strong |
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The liquidity position of the group is strong marked by adequate net cash accruals against its repayment debt obligations. The group generated the NCA of Rs. 101.61 Cr. in FY25 against the negligible debt repayment obligation during the same period. Also, the group maintains a cash balance of Rs. 58.74 Cr. as on 31st March 2025. The current ratio of the group stood at 2.95 times as on 31st March 2025. Further, the liquidity position is expected to strengthen in view of infusion of funds through IPO. Acuité believes the group’s liquidity position shall remain strong due to its comfortable net accruals against its repayment obligations. Further, the average utilization of fund-based limits moderate at ~67.26% in last twelve months ended June’ 2025.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 506.48 | 202.93 |
| PAT | Rs. Cr. | 98.73 | 49.48 |
| PAT Margin | (%) | 19.49 | 24.38 |
| Total Debt/Tangible Net Worth | Times | 0.14 | 0.08 |
| PBDIT/Interest | Times | 41.95 | 35.50 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable |
| Any Other Information |
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None
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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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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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