Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 13.90 ACUITE BBB- | Stable | Assigned - RBI
Bank Loan Ratings 0.00 18.00 ACUITE BBB- | Stable | Reaffirmed - RBI
Total Outstanding 0.00 31.90 - - -
Total Withdrawn 0.00 0.00 - - -
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

­­Acuité has reaffirmed its long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.18.00 Cr. bank facilities of  Savera Pipes Private Limited (SPPL). The outlook is 'Stable'.

­­Acuité has assigned its long term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.13.90 Cr. bank facilities of  Savera Pipes Private Limited (SPPL). The outlook is 'Stable'.


Rationale for reaffirmation:
The rating reaffirmation factors in moderation in operating performance and  moderate financial risk profile marked by low gearing, comfortable debt protection metrics. The rating also factors in the extensive experience of the management and long operational track record of the company. The rating, however, remains constrained on account of working capital-intensive nature of operations and susceptibility of profitability to volatility in raw material prices in a highly fragmented and competitive industry.

About the Company
Hyderabad-based Savera Pipes Private Limited (SPPL) was incorporated in 1996. The company is engaged in the manufacturing of PVC pipes such as PVC tubing, suction hose, braided hose, Krishi hose, corrugated hose, steel-reinforced PVC pipes, duct hose, and PVC rigid pipes, among others. The directors of the company are Mr. Vinod Kumar Giria (Managing Director) and Mr. Vineet Kumar Giria (Director).
 
Unsupported Rating
­Not applicable.
 
Analytical Approach
­Acuité has considered the standalone business and financial risk profile of SPPL to arrive at the rating.
 
Key Rating Drivers

Strengths
­Established track record of operations and experienced management

SPPL was incorporated in 1996. The directors of the company are Mr. Vinod Kumar Giria (Managing Director) and Mr. Vineet Kumar Giria, who have over two decades of experience in the same line of business. The long- track record of operations and the experience of the management have helped the company develop healthy relationships with its customers and suppliers. Acuité believes that the company will continue to benefit from its established track record of operations and experienced management.

Moderate financial risk profile
SPPL’s financial risk profile is moderate, marked by moderate net worth, low gearing and comfortable debt protection metrics. The net worth of the company stood at Rs.28.61 Cr. and Rs.25.85 Cr. as on March 31, 2025, and 2024 respectively. The improvement in net worth is due to accretion of reserves. Gearing of the company stood at 0.77 times as on March 31, 2025, against 0.88 times as on March 31, 2024. Debt protection metrics – Interest coverage ratio and debt service coverage ratio stood at 3.49 times and 1.91 times as on March 31, 2025, respectively as against 3.31 times and 2.27 times as on March 31, 2024, respectively. TOL/TNW (Total outside liabilities/Total net worth) stood at 1.07 times and 1.12 times as on March 31, 2025, and 2024 respectively. The debt to EBITDA of the company stood at 3.23 times as on March 31, 2025, as against 3.40 times as on March 31, 2024. Acuité believes that the financial risk profile will remain moderate in the near term.


Weaknesses
­Moderation in operating performance
The company has reported revenue of Rs. 95.04 Cr. in FY2025 as against Rs.101.69 Cr. in FY2024. In FY 2026 (Est.), the company reported moderation in revenue which stood at Rs.84.68 Cr, the moderation is on account of lack of capacity enhancing and 90-95 percent utilization of current capacity. The EBITDA margins of the company stood at 7.08 percent in FY2025 as against 6.53 percent in FY2024, it is estimated EBITDA margin of ~8.5 percent in FY2026 on account of decrease in raw material cost. Acuite believes SPPL’s ability to improve its overall operating performance will remain a key monitorable.

Working capital intensive operations
The group’s working capital operations is intensive, which stood at 183 days in FY2025 as against 156 days in FY2024. The GCA days are impacted mainly on account of increased inventory days and debtor days in FY2025. Inventory days stood at 96 days in FY2025 as against 88 days in FY2024. The increase in inventory days is on account of the recent expansion of the distribution network through the establishment of two new sales depots in Vizag and Nagpur. As these depots are newly operational, company required to stock a comprehensive range of products at each location to support market development and ensure product availability. Debtor days stood at 91 days in FY2025 as against 71 days in FY2024.Subsequently, the payable period stood at 28 days in FY2025 as against 17 days in FY2024 respectively. Acuité believes that the working capital cycle will continue to remain in  similar range over the medium term.

Susceptibility of profitability to volatility in raw material prices in a highly fragmented and competitive nature of industry
SPPL  is highly sensitive to volatility in raw material prices, particularly polyvinyl chloride (PVC) resin, plasticizers, and additives, which together constitute a significant proportion of total production costs. Since these inputs are largely derived from petrochemical feedstocks, their prices tend to fluctuate in line with crude oil trends, supply-demand imbalances, and geopolitical factors, directly impacting operating margins. It operates in a highly fragmented pipe fitting industry with a large number of players in the organised and unorganised sector limiting the bargaining power with customers.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • ­Growth in revenues of over 15 percent aiding to expansion in scale of operations while maintaining healthy profitability
  • Improvement in debt -EBITDA below 2.5X on a sustained basis.
Potential triggers (individual or collective) for a downward rating action:
  • Significant decline in revenues or profitability
  • Any elongation of the working capital cycle above 250 days
  • Deterioration in financial risk profile owing to unexpected debt funded capex or working capital borrowings
Liquidity Position:
Adequate
­Company’s liquidity is adequate marked by adequate net cash accruals to its maturing debt obligation. The company has generated cash accruals in the range of Rs.3.90 Cr. in FY2025, while its maturing debt obligations were Rs. 0.41 Cr. during the same period. Going forward the company is expected to generate net cash accruals of Rs. 3.94- 3.88 Cr. in FY 2026-27 against Rs.0.39-0.41 Cr. debt obligations. The current ratio stood at 1.64 times as on March 31, 2025, and the limits remains utilized at 95 percent for fund based over the 12 months ended March 2026. The company maintains unencumbered cash and bank balances of Rs.0.24 Cr. as on March 31, 2025. Acuité believes that the company of the group will remain strong over the medium term.
 
 
Outlook: Stable
­
 
Other Factors affecting Rating
­None.
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 95.04 101.69
PAT Rs. Cr. 2.77 2.59
PAT Margin (%) 2.91 2.55
Total Debt/Tangible Net Worth Times 0.77 0.88
PBDIT/Interest Times 3.49 3.31
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
11 Mar 2025 Cash Credit Long Term 18.00 ACUITE BBB- | Stable (Reaffirmed)
12 Dec 2023 Cash Credit Long Term 18.00 ACUITE BBB- | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
CITI Bank Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.00 Simple ACUITE BBB- | Stable | Reaffirmed
CITI Bank Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE BBB- | Stable | Assigned
CITI Bank Not avl. / Not appl. Term Loan Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. 05 May 2030 8.00 Simple ACUITE BBB- | Stable | Assigned
Bank Of Baroda Not avl. / Not appl. Term Loan Unlisted RBI 07 Dec 2020 Not avl. / Not appl. 30 Apr 2028 2.90 Simple ACUITE BBB- | Stable | Assigned
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.

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