Press Release

Press Release

August 22, 2025

ROYAL UNIFORCE ROOFINGS PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE BBB- \| Stable \| Reaffirmed	-
Total Outstanding	50.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 50.00 Cr. bank facilities of Royal Uniforce Roofings Private Limited (RURPL). The outlook is 'Stable'.

Rationale for rating reaffirmation
The rating reaffirmation factors the stable scale of operations, moderate financial risk profile and adequate liquidity. The rating also draws comfort from the long track of operations of the company with an experienced management. The rating, however, remains constrained on account of intensive working capital operations, susceptibility of operations to change in government regulations and fluctuation in raw material prices.
Going ahead, ability of the company to increase the capacity utilisation with a growing trend in revenues along with improvement in profitability will remain key rating monitorable.

About the Company

Incorporated in 2009, Royal Uniforce Roofings Private Limited (RURPL) is Nagpur-based company engaged into manufacturing of asbestos cement sheets and has a manufacturing facility located in Chhindwara, Madhya Pradesh with an annual capacity of 1,80,000 MT (increased from 90,000 MT in FY2023). The current directors of the company are Mr. Shyam Sunder Sharma, Mr. Sadique Ahmed Ansari, Mr. Uday Singh Siriya, and Mr. Kuldeep Arora.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone financial and business risk profile of Royal Uniforce Roofings Private Limited to arrive at this rating.

Key Rating Drivers

Strengths

Experienced management
RURPL was incorporated in 2009 and is engaged in the manufacturing of asbestos cement sheets. The current directors of the company have more than a decade of experience in the aforesaid industry. This has helped the company establish a strong market position in the vicinity of Nagpur and Chhindwara region. Moreover, having a presence of more than a decade in the industry has helped the company to maintain strong relations with its customers and suppliers. Acuité believes that the company will continue to derive benefit from its promoter’s experience over the medium term and additionally, with government’s thrust on housing for all, the demand for asbestos sheets is likely to remain healthy in the near to medium term.

Stable scale of operations
The operating revenue of the company stood at Rs. 89.16 Cr. in FY2025(Prov.) as against Rs. 87.50 Cr. in FY2024. Further, in Q1FY2026 the company has booked revenues of Rs. 42.0 Cr. (Rs. 41.1 Cr. in Q1FY2025). The operating profit margin increased to 10.62% in FY2025(Prov.) as compared to 5.24% in FY2024, due to reduction in the imported asbestos fibre material cost which had escalated earlier due to Russia-Ukraine war causing supply disruptions. Going forward, the margins is further estimated to remain in the similar range over the medium term.

Moderate financial risk profile
The adjusted tangible net worth of the company improved to Rs. 35.56 Cr. as on March 31, 2025 (Prov.) as against Rs. 33.89 Cr. as on March 31, 2024, on account of accretion of profits to reserves. The networth figure also includes quasi equity of Rs. 18.39 Cr. The gearing level marginally improved and stood at 1.30 times as on 31 March 2025(Prov.) as against 1.42 times as on 31 March 2024. Further, the Total outside Liabilities/Tangible Net Worth (TOL/TNW) of the company stood moderate at 1.42 times as on FY2025(Prov.) (1.51 times as on March 31, 2024). The interest coverage and debt service coverage ratio also stood moderate at 3.02 times and 1.27 times respectively as on March 31, 2025 (Prov.).
Acuite believes that the financial risk profile would improve over the medium term on account of improved business risk profile and absence of any new major debt funded capex plan.

Weaknesses

Intensive working capital operations
The company's working capital management remains intensive, marked by elevated gross current assets (GCA) of 205 days in FY2025 (Prov.) compared to 208 days in FY2024. The high GCA days are driven by high raw material stocking days of 191 days in FY2025(Prov.) (178 days in FY2024) to combat any situation of unavailability of the imported material. However, the debtor period stood comfortable at 16 days as on 31st March 2025(Prov.) as compared to 7 days on 31st March 2024.

Susceptibility of operations to change in government regulations and profitability to raw material price fluctuations
One of the key raw materials for the company is the asbestos fibre contains carcinogen substance which is not environment friendly. The mining of the same is banned by the government. There are government regulations with regards to the production of materials from asbestos, so any changes in the government policies in the future can adversely impact the operations of the company. Further, since these materials are primarily imported from Russia and Brazil any geopolitical crisis in these place affects the prices and thereby causes decline in profitability (as witnessed in FY2024 & FY2023).

Rating Sensitivities

Significant growth in operating revenues while maintaining profitability.
Continued maintenance or improvement of the current financial risk profile
Any deterioration in the working capital cycle and liquidity profile of the company.

Liquidity Position

Adequate

The company has adequate liquidity profile as reflected from its net cash accrual of Rs. 7.07 Cr. in FY2025(Prov.) as against repayment obligations of Rs. 4.76 Cr. during the same period. Further, the company is expected to generate cash accruals in the range of Rs. 7.51 Cr- 8.74 Cr. as against repayment obligation in the range of Rs. 5.70 – 5.78 Cr. during the same period. The average utilisation of fund-based limits stood moderate at ~ 82.46% over the last six months ending April 2025. The current ratio also stood moderate at 1.37 times in FY2025(Prov.). Further, the cash and bank balance of the company stood at Rs.2.52 Cr. as on March 31, 2025(Prov.).
Acuite expects the liquidity position of the company to remain adequate over the medium term backed by steady accruals.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	89.16	87.50
PAT	Rs. Cr.	1.67	0.48
PAT Margin	(%)	1.88	0.55
Total Debt/Tangible Net Worth	Times	1.30	1.42
PBDIT/Interest	Times	3.02	2.31

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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
30 May 2024	Cash Credit	Long Term	29.00	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	18.19	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	0.54	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	2.27	ACUITE BBB- \| Stable (Reaffirmed)
02 Mar 2023	Cash Credit	Long Term	20.00	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	23.85	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	0.95	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	5.20	ACUITE BBB- \| Stable (Reaffirmed)
07 Jan 2022	Proposed Letter of Credit	Short Term	5.00	ACUITE A3 (Assigned)
	Term Loan	Long Term	1.15	ACUITE BBB- \| Stable (Assigned)
	Proposed Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	8.85	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	15.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank of Maharashtra	Not avl. / Not appl.	Cash Credit	27 Oct 2023	Not avl. / Not appl.	Not avl. / Not appl.	29.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.55	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 May 2031	2.10	Simple	ACUITE BBB- \| Stable \| Reaffirmed
HDFC Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	20 May 2027	1.71	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Axis Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2028	2.12	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Bank of Maharashtra	Not avl. / Not appl.	Term Loan	28 Dec 2021	Not avl. / Not appl.	31 Dec 2028	11.40	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Bank of Maharashtra	Not avl. / Not appl.	Term Loan	28 Dec 2021	Not avl. / Not appl.	28 Dec 2025	0.12	Simple	ACUITE BBB- \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kirti Berlia
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.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.