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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 17.29 | ACUITE BB- | Stable | Reaffirmed | - |
| Bank Loan Ratings | 12.00 | - | ACUITE A4+ | Reaffirmed |
| Total Outstanding | 29.29 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating to 'ACUITE BB-' (read as ACUITE double B minus) and short-term rating to 'ACUITE A4+' (read as ACUITE A four plus) on the Rs.29.29 Cr. bank facilities of Sourabh Kumar Roy (SKR). The outlook is 'Stable'.
Rationale for reaffirmation The rating reaffirmation takes into account stable scale of operations of the firm backed by modest order book position of ~Rs.30 Cr as on 30th October, 2025 (0.47 times of FY25 revenue). Further, the rating is constrained on account of intensive working capital operations and stretched liquidity position with high bank limit utilisation. The firm is subject to intensive competition, high dependence on the West Bengal state government orders which keeps the operating performance susceptible and capital withdrawal risk owing to partnership nature of the firm. However, the rating derives support from long track record of operations along with moderate financial risk profile. |
| About the Company |
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Incorporated in 2007, Sourabh Kumar Roy is a West Bengal based partnership firm engaged in road and bridge construction in southern districts of West Bengal. The firm undertakes tender based contract from the Public Works Department (PWD) of West Bengal government where it is registered as a Class 1 civil contractor. The partners of the firm are Mr. Sourabh Kumar Roy and Mrs. Sangita Roy.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profiles of the Sourabh Kumar Roy (SKR) to arrive at this rating. |
| Key Rating Drivers |
| Strengths |
| Experienced management
Incorporated in 2007, Sourabh Kumar Roy (SKR) is a Class 1 civil contractor having established presence in executing projects related to primarily roads and bridge construction in the district of Burdwan, West Midnapore, East Midnapore, Purulia and Bankura. Further, the partners also bring in nearly two decades of experience in the line of civil construction. Acuité believes that the promoters’ experienced management will aid SKR's business risk profile over the medium term. Moderate financial risk profile The financial risk profile of the firm stood moderate marked by low gearing and moderate debt protection metrics. The tangible net worth stood at Rs.31.53 Cr as on 31st March 2025 (Rs.31.10 Cr as on 31st March, 2024). Further, the debt of the firm for FY25 stood increased at Rs.27.39 Cr on account of high short-term borrowings. Therefore, the gearing (debt-equity) stood slightly high but continue to remain below unity at 0.87 times as on 31st March, 2025 (0.66 times as on 31st March, 2024). Moreover, the debt protection metrics also stood moderate with interest coverage ratio of 3.41 times and debt service coverage ratio of 1.71 times as on 31st March, 2025. Acuité expects the financial risk profile to remain moderate over the medium term on account of no major debt funded capex plans. |
| Weaknesses |
| Modest scale of operations and order book
The revenue of the firm improved in FY24 to Rs.134.38 Cr against Rs.70.17 Cr in FY23 on account of order execution of the previous orders leading to higher billing, resulting which major costs were also incurred during the same year and the operating and profitability margins stood moderated. Further, the revenue stood moderated in FY25 at Rs.64.97 Cr with improvement in EBITDA margin at 12.80% in FY25 against 7.36% in FY24. The improvement in margins is basis lowering of input costs. The PAT margin also improved to 6.54% in FY25 as compared to 5.20% in FY24. Moreover, the unexecuted order book of the firm stood modest at Rs.30.30 Cr as on 30th October, 2025 (0.47 times of FY25 revenue); execution and growth in which will remain a key monitorable. Further, the firm has recorded low top line of ~Rs.15 Cr during H1FY26. Intensive working capital operations The working capital operations of SKR are intensive marked by gross current assets (GCA) of 420 days for FY25 as against 208 days for FY24. The increase in GCA is on account of high other current assets which majorly includes retention money, security deposits and advances to suppliers. On the other hand, inventory cycle stood at 52 days in FY25 as against 46 days in FY24. The creditors days stood high at 307 days in FY25 as against 217 days in FY24. Customer concentration risk and intensive competition SKR does civil construction work mainly for West Bengal Government which indicates that the firm’s revenues are highly dependent on number and value of tenders floated by State Government. Moreover, any delays in the project execution of current projects along with the delayed receipt from government and site related issues are likely to result in higher working capital requirements. Further, the sector is marked by the presence of several mid to large sized players; resulting which, the risk becomes more pronounced as tendering is based on minimum amount of bidding on contracts and there exists susceptibility to inherent cyclicality in the infrastructure segment. However, these risks are mitigated, as SKR has established relations with State Government departments which resulted in timely realizations and winning of tenders at regular intervals. Inherent risk of withdrawal of partner's capital In FY25, the partners withdrew nearly Rs.2.00 Cr which led to moderation in net worth of the firm. Therefore, the firm is susceptible to the risk of any excess withdrawal of partner's capital limiting the growth in net-worth. |
| Rating Sensitivities |
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| Liquidity Position |
| Stretched |
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The firm’s fund based working capital limits stood fully utilised and for non-fund based limits, utilisation stood at ~56% for the last six months ended September, 2025. However, the firm generated sufficient net cash accruals of Rs.6.14 Cr in FY25 against maturing debt obligations of Rs.2.53 Cr in the same tenure. In addition, it is expected to generate a sufficient cash accrual in the range of Rs.6-7 Cr against the maturing repayment obligations in the range of Rs.1.80-2.50 Cr over the medium term. The current ratio stood moderate at 1.41 times as on 31st March, 2025.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 64.97 | 134.38 |
| PAT | Rs. Cr. | 4.25 | 6.99 |
| PAT Margin | (%) | 6.54 | 5.20 |
| Total Debt/Tangible Net Worth | Times | 0.87 | 0.66 |
| PBDIT/Interest | Times | 3.41 | 6.02 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable. |
| Any other information |
| None. |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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