| Experienced management, established track record of operations
SS Group has an established track record of operations, spanning over seven decades in the logistics business through their group company, HFC. The promoter of the group, Mr. Rambilash Agarwal, has nearly four decades of experience in the same line of business and is ably assisted by an experienced second line of management. Mr. Ashwin Agarwal possesses more than a decade of experience in this industry and manages the day-to-day operations of the group. The group maintains strong relationships with reputed clients and suppliers due to its long-standing presence in the industry.
Acuité believes that the group will continue to benefit from its established presence, experienced management, which will help the group secure repeat orders from customers such as Tata Motors Limited, Exide Industries Limited, Mondelez India Foods Private Limited, and Aak India Private Limited, and maintain healthy relationships with its customers and suppliers.
Stable revenue and profitability margins
The revenue of the group stood at Rs. 347.54 Cr. in FY25 as compared to Rs. 338.83 Cr. in FY24. Out of the group revenue achieved in FY25, Safe and Secure Logistics Private Limited has achieved ~Rs. 347 Cr. (FY24 ~Rs.332.56 Cr.) and remaining Rs. 46 Cr (FY24 ~Rs.45.31 Cr.) is from Haryana Freight Carrier. Profitability remained steady at 4.93% in FY25 as against 4.83% in FY24. The PAT margin of the company stood at 2.80% in FY24 as against 2.73% in FY24. Further, in 8M FY2026 at consolidated level the group has reported revenue of Rs. 252.61 Cr. with EBITDA margin at 5.55% and PAT margin at 3.41%. Acuité believes that the group’s ability to consistently improve its revenue profitability will be key rating sensitivity.
Moderate Financial Risk Profile
The financial risk profile of the group stood moderate, marked by moderate net worth, low gearing (debt-equity) and above average debt protection metrics. The tangible net worth stood at Rs. 49.08 Cr. as on 31 March 2025 as against Rs. 41.78 Cr. as on 31 March 2024 on account of accretion of profits to reserves. The total debt of the group stood at Rs. 15.35 Cr. as on 31 March 2025 which includes long-term debt of Rs. 1.04 Cr, short-term debt of Rs.14.18 Cr and unsecured loans of Rs. 0.12 Cr. The gearing (debt/equity) stood low at 0.31 times as on 31 March 2025 as compared to 0.48 times as on 31 March 2024. Interest Coverage Ratio (ICR) stood at 7.15 times in FY25 as against 7.76 times for FY2024. Debt Service Coverage Ratio (DSCR) stood at 5.54 times in FY2024 as compared to 5.98 times in FY2024. Total outside Liabilities/Total Net Worth (TOL/TNW) stood at 0.74 times as on 31 March 2025 as against 1.03 times as on 31 March 2025. Net Cash Accruals to Total Debt (NCA/TD) stood at 0.75 times for FY2025 as against 0.55 times for FY2024.
Acuite believes the financial risk profile of the group will continue to remain moderate on account of expected steady net cash accruals and absence of any major debt-funded capex over the near term.
Efficient Working Capital Management
The working capital management of the group remained efficient marked by Gross current assets (GCA) of 70 days in FY25 as against 73 days in FY24. Debtor’s collection period stood at 61 days in FY25 as against 68 days in FY24. Generally, the group gives a credit period of 60 to 90 days to its customers. Furthermore, the creditor days stood at 19 days in FY25 as against 23 days in FY24. The clientele of the group includes Tata Motors Ltd (CV And PV), Mahindra and Mahindra Group, Mondelez India Foods Private Limited etc. Further, the reliance on working capital limits stood moderate at ~78 per cent during the last 6 months ended November 2025. Acuite believes that the working capital operations of the company are expected to remain efficient in the near term.
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| Customer concentration risk
The company faces moderate customer concentration risk with the top 3 customers collectively accounting for approximately ~64% of the total revenue in FY2025 indicating a notable concentration of revenue among a limited number of clients. The top 3 customers include, Tata Motors Ltd (CV And PV), Mahindra And Mahindra Group and Mondelez India Foods Private Limited. However, the group’s long-standing relations with these customers mitigate the risk to some extent. Acuite believes ability of the company to diversify its customer base will remain a key rating sensitivity.
Presence in highly fragmented and competitive industry
The group operates in a highly fragmented industry with stiff competition from organised and unorganised players in the market, which limits the company's flexibility to pass on the increase in cost to the customers. Thus, on account of stiff competition from other domestic and global players, SS group continues to face the pricing pressure. However, this risk is mitigated to an extent on account of the extensive experience of the management and well-established presence in the industry.
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