Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuite has assigned long term rating of 'ACUITE BBB-'(read as ACUITE triple B minus) on the Rs. 70 Cr. bank facilities of Sainik Infratec Private Limited. The outlook is 'Stable'.
Rationale for rating
The rating takes into cognizance significant growth in revenues and operating profitability in FY 25 of the group. The group has registered revenues of about Rs. 430 Cr. in FY 26 (Prov.) as compared to Rs.175.49 Cr. in FY25 on account of execution of orders. It has strong orderbook position of about Rs. 7865.28 Cr. to be executed over a span of 15-20 years by the group providing revenue visibility in the near to medium term, healthy financial risk profile with moderate networth, low gearing and robust debt protection metrices and adequate liquidity with sufficient net cash accruals, free deposits with bank and unutilised bank limits. The rating is further supported by experienced management in the coal industry and reputed customer base like Mahanadi Coalfields Limited, Central Coalfields Limited among others. However, these strengths are partly offset by moderately-intensive working capital cycle and presence in fragmented industry and exposure to price volatility.
About the Company
Incorporated in 2010, Sainik Infratec Private Limited (SIPL) is primarily engaged in providing coal mining support services, including removal of overburden and extraction of coal, transportation and loading of coal, maintenance of hiring equipment and trading of spare parts used in mining operations. The operations of the company is managed by Captain Kuldeep Solanki, who is an ex-Army officer, has over 4 decades years of experience in mining, logistics, drilling and exploration.
About the Group
SIPL has three subsidiaries namely Sainik Infratec-FZCO Dubai, Sainik Potash Private Limited and XLR Enterprises (Cyprus) Limited which are non operational in nature and one associate company namely Global Minetec Limited with 39% stake. Additionally, it has 4 JVs namely Kaartik Mining JV, SGG Mining JV, Agrim Mining JV and Sainik Infratec PBNW with a profit sharing ratio of 49%, 39%, 49% and 90% respectively.
Unsupported Rating
Not Applicable
Analytical Approach
Extent of Consolidation
•Full Consolidation
Rationale for Consolidation or Parent / Group / Govt. Support
Acuite has taken consolidation approach of the subsidiaries, associates and JVs of Sainik Infratec Private Limited to arrive at the rating on account of all entities are in the same line of business, common management and strong operational linkages.
Key Rating Drivers
Strengths
Benefits derived from experienced promoters
The operations of the group are managed by Captain Kuldeep Solanki, who is an ex-Army officer, has over 4 decades years of experience in mining, logistics, drilling and exploration. The customers of the group are Mahanadi Coalfields Limited, Central Coalfields Limited, NTPC Limited among others. Acuite believes that the benefits derived from the promoters and reputed customer base will support the group going forward.
Significant improvement in the revenues and operating profitability
The revenues of the group have significantly improved to Rs. 175.49 Cr. in FY 25 as compared to Rs. 112.45 Cr. in FY 24 and Rs. 65.69 Cr. in FY 23 on account of execution of orders. The group has achieved revenues of about Rs. 430 Cr. as of FY 2026 (Prov.). The significant increase is majorly on account of ramp up in the Urimari mine project coupled with timely execution of other orders in hand. The operating profitability has increased to 16.63 percent in FY 25 as compared to 10.41 percent in FY 24 on account of better absorption of costs.
The unexecuted orderbook position is Rs. 7865.28 Cr. to be executed over a span of 15-20 years by the group. Acuite believes that the scale of operations and operating profitability will improve in the near medium on account of the orders in hand of the company.
Healthy financial risk profile
The financial risk profile of the group is healthy marked by improving net worth, low gearing and robust debt protection metrices. The tangible net worth of the group stood at Rs. 57.51 Cr. as on March 31, 2025 as compared to Rs. 24.84 Cr. as on March 31, 2024 due to accretion to reserves. The gearing of the group stood at 0.80 times as on March 31, 2025 as compared to 0.77 times as on March 31, 2024. The long-term debt majorly comprises of the equipment loans. The unsecured loans (from directors and related parties) amounts to Rs. 8.34 Cr. in FY 25. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.09 times as on March 31, 2025 as compared to 2.77 times as on March 31, 2024. The debt protection metrices of the group remain robust marked by Interest Coverage ratio (ICR) of 27.18 times as on March 31, 2025 and debt service coverage ratio (DSCR) of 22.94 times for March 31, 2025. The net cash accruals to total debt (NCA/TD) stood at 0.77 times as on March 31, 2025 as compared to 0.91 times as on March 31, 2024. Acuité believes that the financial risk profile is expected to improve over the medium term, with steady cash accruals.
Weaknesses
Moderately-Intensive Working Capital Cycle
The working capital cycle of the company is moderately intensive as reflected by Gross Current Assets (GCA) of 109 days for March 31, 2025 as compared to 172 days for March 31, 2024. The debtor period stood at 23 days as on March 31, 2025 as compared to 79 days as on March 31, 2024. For customers like, MCL and CCL, payments are received within 30-35 days. Further, the inventory days of the company stood at 11 days as on March 31, 2025 as compared to 12 days in FY2024. The inventory holding includes spare parts. The creditors stood at 628 days as on March 31, 2025 as compared to 391 days as on March 31, 2024. Acuité believes that the working capital operations of the group is expected to remain in similar range in the medium term.
Presence in Fragmented Industry and Exposure to Price Volatility
The coal trading industry is highly fragmented with numerous small players due to low entry barriers, resulting in intense competition. The company primarily caters to steel, cement, and power sectors, where demand is closely linked to overall economic activity, making its business risk profile vulnerable to cyclical fluctuations. Additionally, operations remain exposed to volatility in coal prices and changes in regulatory policies, which could impact profitability and demand dynamics.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Sustained revenue growth and sustained profitability
Timely execution of orders
Current ratio to improve to about 1.5x
Potential triggers (individual or collective) for a downward rating action:
Sustained operating profitability in the medium term
Elongation of working capital cycle
Liquidity Position
Adequate
The group has adequate liquidity marked by net cash accruals of Rs 35.50 Cr. as on FY2025 as against no long-term debt repayment over the same period. Going forward, the repayments for the next two financial years is expected to be around Rs. 4.82 Cr. and Rs. 10.46 Cr. for FY 26 and FY 27 respectively. The management has flexibility to infuse funds as and when required to support the business. The cash and bank balance stood at Rs. 10.77 Cr. as on March 31, 2025 and Rs. 9.41 Cr. as on March 31, 2024. The group also has free deposits with bank of Rs.18.21 Cr. in FY 25. As of FY 26, the deposits are expected to be Rs. 21 Cr. Further, the current ratio of the group is low stood at 0.89 times as on March 31, 2025 as compared to 1.01 times as on March 31, 2024. Cash credit has been sanctioned but not availed in the last 13 months of operations. The group has capex plans for purchasing equipment to execute the orderbook. Acuité believes that the liquidity of the group is expected to remain adequate over the near to medium term on account of steady cash accruals, unutilized fund-based limits albeit low current ratio.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
175.49
112.45
PAT
Rs. Cr.
31.04
16.55
PAT Margin
(%)
17.69
14.72
Total Debt/Tangible Net Worth
Times
0.80
0.77
PBDIT/Interest
Times
27.18
44.51
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr No.
Company Name
1
Sainik Infratec Private Limited
2
Sainik Infratec-FZCO Dubai
3
Sainik Potash Private Limited
4
XLR Enterprises (Cyprus) Limited
5
Global Minetec Limited
6
Kaartik Mining JV
7
SGG Mining JV
8
Agrim Mining JV
9
Sainik Infratec PBNW JV
Contacts
List of instruments and names of regulators of the instruments
