| Established track record, extensive industry experience of the promoters
SIL has been a part of AM International group since 2006 and is headquartered in Chennai, India. AM International Group, founded and chaired by Mr. Ashwin Muthiah, is a Singapore-based conglomerate with diversified operations across multiple sectors, including Fertilizers & Supply Chain, Petrochemicals, Infrastructure Services, Medtech and Green Solutions. The group operates across eight countries in South East Asia, South Asia, West Asia and Europe. SIL is engaged in trading of building material and Power & Control Systems, and also manufactures drums, cables, boat building and specialty chemicals. SIL is a single point of contact for supplying the building materials and has a network of 15 sales offices cum warehouses across India. Its widespread presence allows for geographical and product diversification, enabling SIL to cater to regional demand fluctuations, expand its client base, improve price realization and ensure steady business growth. SIL sources materials from various manufacturers including Tata Steel BSL Ltd, Jindal Pipes Limited, Tata Steel Limited, Jindal Steel & Power Ltd, , Apl Apollo Tubes Ltd, Jindal (India) Limited, Finolex Cables Limited, Bhushan Power & Steel Limited, Maharashtra Seamless Limited. Its customer base includes contractors, builders and industrial buyers. Acuité believes that the well-experienced directors and professional and experienced management in the building material supply industry, established relations with its stake holder's shall enable its future growth.
Improving scale of operations:
SIL’s revenue has improved to Rs.539.20 Cr. in FY2025, posting a ~13 percent growth on FY2024 revenue of Rs.476.96 Cr. This growth in revenue was largely driven by higher trading volumes. Further, during 9MFY2026, the company registered revenue of Rs.380.58 Cr. as against Rs.402.6 Cr. registered during 9MFY2025 and expected to close FY2026 with revenue of Rs.515.00 to Rs.520.00 Cr. The marginal decline in operating income during 9MFY2026 as against 9MFY2025 is because of higher trading activity last year. The operating profit margin improved to 4.14 percent in FY2025 from 3.58 percent in FY2024. During 9MFY2026, the operating profit margin remained at 4.15 percent. The PAT margin improved marginally 2.69 percent in FY2025 from 1.86 percent in FY2024, which remained at 2.56 percent in 9MFY2026.
Acuite believes, SIL’s revenue will continue to improve steadily on account of increasing orders with operating profit margins expected to remain around similar levels.
Healthy financial risk profile:
SIL’s financial risk profile is marked by healthy networth, low gearing and healthy debt protection metrics. Net worth stood at Rs.439.29 Cr. as on March 31, 2025 as against Rs.423.02 Cr. as on March 31, 2024. The improvement in networth is due to increase in other comprehensive income reserve coupled by accretion of profits to the reserves. The total debt stood at Rs.64.96 Cr. as on March 31, 2025(comprising long-term lease liability of Rs.4.85 Cr, short-term debt of Rs.56.81 Cr. and current maturities of lease- liability of Rs.3.30 Cr.) as against Rs.49.65 Cr. as on March 31, 2024. Further during 6MFY2026, the total debt level increased to Rs.74.39 Cr, primarily due to increase in short-term debt levels. The gearing remained healthy at 0.15 times as on March 31, 2025 as against 0.12 times as of previous year end. The total outside liabilities to tangible networth (TOL/TNW) stood at 0.21 times as on March 31, 2025 against 0.18 times as on March 31, 2024. The debt protection metrics remained healthy with interest coverage ratio (ICR) of 5.37 times and debt service coverage (DSCR) of 2.94 times as on March 31, 2025, compared to ICR of 4.14 times and DSCR of 2.50 times as of previous year end. Debt to EBITDA stood at 2.08 times as on March 31, 2025 against 2.19 times as of March 31, 2024. The DSCR excluding current maturities of lease liabilities stood at 5.37 times as on March 31, 2025, while Debt to EBITDA excluding the lease liabilities stood at 1.82 times as on March 31, 2025.
Acuite believes, the financial risk profile of the company will remain healthy on account of healthy net worth position.
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| Moderately intensive working capital operations:
The working capital operations of the company are moderately intensive as reflected through gross current asset (GCA) of 136 days in FY2025, improved from 147 days in FY2024, due to improvement in inventory holding period. The inventory days, primarily includes stock in trade, improved to 43 days in FY2025 from 51 days in FY2024. The company usually allows a credit period of 45-60 days, which is reflected in the debtor days of 67 days in FY2025 as against 63 days in FY2024 and usually makes upfront payment to the suppliers, resulting in lower creditor days of 11 days in FY2025 against 9 days in FY2024. The fund based working capital limits were utilized at an average of ~43 percent over the past 12 months ending December 2025. Acuite believes, given the competitive and trading nature of operations, the company’s working will remain moderately intensive over the medium term.
Thin profitability with limited cushion against volatility:
The operating profit margin improved from 3.41 percent in FY2023 to 3.58 percent in FY2024 and further to 4.14 percent in FY2025 and it remained at 4.14 percent in 9MFY2026 as well. While the improvement indicates some stabilisation, the absolute margin level continues to remain thin, leaving limited buffer against adverse movements in input costs, freight/logistics expenses and competitive pricing pressures. Consequently, any drop in demand or rise in costs can influence profitability, which restrict cash generation moderate and limits financial flexibility.
Risk of recovery from advances and aged debtors
Sicagen India Limited has a relatively high level of non-current assets inform of advances extended to other parties, which constrains balance-sheet liquidity. Additionally, debtor balances of around Rs.18Cr outstanding for more than 365 days as on December 31, 2025, elevate the risk of write-offs, which could adversely impact cash flows and financial flexibility if recoveries remain delayed and will remain a monitorable.
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