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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 27.00 | ACUITE BB+ | Stable | Reaffirmed | - |
| Bank Loan Ratings | 43.00 | - | ACUITE A4+ | Reaffirmed |
| Total Outstanding | 70.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE BB+’ (read as ACUITE double B plus) and the short-term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs.70.00 Cr. bank facilities of Technocom (TC). The outlook is 'Stable'.
Rationale for rating The rating reaffirmation takes into account improved scale of operations in FY25 owing to increase in order executions. However, future revenue growth is backed by moderate order book of Rs.246 Cr. as of September 2025 (1.64 times of FY25 revenue), timely execution and growth in which remains a key rating monitorable. Additionally, the rating derives its strengths from moderate financial risk profile on account of low debt profile and moderate debt protection metrics. Further, the rating considers established track record of the management in the industry with reputed clientele; however, remains constrained by the intensive working capital operations due to high unbilled revenue. Moreover, the firm is subject to intensive competition & tender based nature of business which keeps the operating margins low. Also, being a partnership nature, the net worth is susceptible to any major capital withdrawals. |
| About the Company |
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Incorporated in 1986 by Mr. Dwarka Prasad Didwania, Technocom (TC) operates as a partnership firm based out of Guwahati. The firm is a Class I contractor for the Indian Railways, specializing in comprehensive signalling and telecom services. It engages in tender-based contracts involving the design, testing, installation, and maintenance of signalling systems for the Indian Railways. The firm is managed by partners, Mr. Mayank Didwania, Mrs. Puspa Didwania, and Mr. Dwarka Prasad Didwania.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of TC while arriving at the rating. |
| Key Rating Drivers |
| Strengths |
| Long track record of operation and experienced management
With over 3 decades of experience in the railway infrastructure sector, Technocom (TC) has established a strong foothold across India. Also, partner, Mr. Dwarka Prasad Didwania brings the expertise in railway signalling and infrastructure industry which has enabled the firm in building a lasting presence in the industry, fostering a strong relationship with Indian Railways. Further, to enhance its project capacity, Technocom forms joint venture, leveraging the bid capacities of its partner for larger projects. Furthermore, for diversification, in FY23 the firm expanded into household contracts segment, providing piped water supply under the Jal Jeevan Mission in Assam. Improved scale of operations The total operating income decreased from Rs.103.15 Cr. in FY23 to Rs.77.83 Cr. in FY24 due to country elections that led to lower tenders floats along with some delays in orders execution. However, the operating income improved to Rs.150.14 Cr. during FY25(Prov.) as compared to FY24. This growth is attributable to better order execution of the previous orders and further receipt of new orders during the year. However, the outstanding order book stood moderate at Rs.246.11 Cr. as on September, 2025 (1.64 times of FY25(Prov.) revenue), timely execution and growth in which remains a key rating monitorable. The firm also has L1 orders worth ~Rs.235 Cr. as of September 2025. Further, the firm recorded operating income of Rs. 38.16 Cr. during H1FY26. Moderate financial risk profile The financial risk profile of the firm is moderate marked by moderate net worth, low gearing and moderate debt protection metrics. The tangible net worth stood improved at Rs.85.41 Cr. as on 31st March 2025(Prov.) as against Rs.77.72 Cr. as on 31st March, 2024 on account of profit accretion. The debt profile majorly includes working capital borrowing, therefore, the gearing (debt-equity) has remained below unity over the years and stood at 0.24 times as on 31st March, 2025(Prov.) Moreover, the debt protection metrics also stood moderate with interest coverage ratio and debt service coverage ratio of 2.74 times and 2.13 times during FY25(Prov.) respectively. |
| Weaknesses |
| Intensive working capital management
The working capital operations of the firm though improved but remain intensive, marked by its gross current assets (GCA) of 273 days for FY25(Prov.) (426 days for FY24). This majorly includes inventory days which remained high at 141 days in FY25(Prov.) (199 days in FY24) owing to high unbilled revenue for the supply made to railways. Therefore, the firm’s reliance on working capital limits is moderately intensive as reflected from average bank limit utilization which stood at ~84% for fund-based facilities and ~89% for non-fund based facilities for the last 6 months ended September, 2025. However, the debtor days stood improved at 28 days in FY25 (Prov.) (40 days in FY24) and the creditors cycle stood at 56 days in FY25(Prov.) (52 days in FY24). Moreover, the working capital is expected to remain intensive over the medium term considering the nature of business. Tender based nature of operations & competitive industry leading to thin margins The railway infrastructure sector has presence of several mid to large sized players. 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. Therefore, TC's revenues and margins are susceptible to the competitive bidding scenario, hence, the operating margin of the firm remained low at 3.71% during FY25(Prov.). The EBITDA margin is further susceptible to the raw material procurement made during the year depending upon the stage of ongoing work order, which might lead to increase/decrease in the input costs. Inherent risk of withdrawal of partner's capital The firm is susceptible to the inherent risk of capital withdrawal given its constitution. Any significant withdrawal of the partner’s capital will have a negative bearing on the financial risk profile of the firm. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The liquidity position of the firm is adequate as reflected from sufficient net cash accruals (NCA) of Rs.4.07 Cr. during FY25(Prov.) as against maturing debt obligations of Rs.0.67 Cr. Going forward, firm is expected to generate cash accruals in the range of Rs.3.80-4.50 Cr. over the medium term, while repayment obligations are expected to be in the range of Rs.0.45-0.70 Cr. for the same period. The current ratio stood healthy at 3.26 times during FY25(Prov.). Further, the firm’s reliance on working capital limits is moderately intensive as reflected from average bank limit utilization which stood at ~84% for fund-based facilities and ~89% for non-fund based facilities for the last 6 months ended September, 2025. Therefore, the firm is planning to enhance its short-term borrowings by ~Rs.5-7 Cr. to meet the working capital requirements.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 150.14 | 77.83 |
| PAT | Rs. Cr. | 3.98 | 1.83 |
| PAT Margin | (%) | 2.65 | 2.35 |
| Total Debt/Tangible Net Worth | Times | 0.24 | 0.17 |
| PBDIT/Interest | Times | 2.74 | 2.50 |
| 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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