Experience Management:
Mr. Arnav Kishore and Mrs. Neetu Kishore are the key promoters of VIPL and have more than two decades of expertise in the toll management sector. The business has been able to sustain enduring relationships with both suppliers and customers for more than ten years. Back-to-back order execution has allowed the business to reach a healthy size of operations. As of June'25, the company has an outstanding order book of Rs. 154.94 crore from reputable clients including Larsen & Turbo Ltd., PNC Infratech Limited, Indian Highway Management Co. Ltd. Gawar Construction Limited, etc. Acuite believes the company will continue to gain from the promoters experience and long-term operational track record of the Company.


Stable operational performance:

VIPL continues to exhibit stable operational performance, with operating revenue rising consistently over the past three fiscal years Rs.181.13 Crore in FY2025 (Prov), up from Rs.170.32 Crore in FY2024 and Rs.162.13 Crore in FY2023 marking a growth of 6.35% year-over-year. The company’s topline is predominantly supported by its TMS & ATMS businesses, contributing 60% from supply and installation and 40% from Annual Maintenance Contracts (AMC). While quarterly revenue has fluctuated due to the dependency on operational roadways, VIPL recorded Rs.34 Crore in Q1FY26, reflecting realization momentum. Profitability has improved substantially, with operating margin increasing to 16.08% from 12.91%, and PAT margin rising to 11.45% from 9.21% in FY 25 (prov.) from FY24, primarily due to lower material and finance costs. A healthy ROCE of 24.45% as on March 31, 2025 (prov.), underscores VIPL’s operational efficiency. Acuité believes VIPL’s consistent revenue growth, improving margins, and healthy order pipeline will continue to strengthen its credit profile in the near to medium term.

Healthy financial risk profile:

VIPL maintains a healthy financial risk profile, backed by steady growth in tangible net worth to Rs.111.63 Crore in FY25 (Prov.) from Rs.91.11 Crore in FY2024 and Rs.75.43 crore in FY2023, driven by internal accruals. Despite an increase in short-term working capital borrowings, the gearing ratio remains comfortable at 0.25x in FY2025(prov) compared to 0.19x in FY2024 and 0.17x in FY2023. The company’s TOL/TNW and NCA/TD ratio stood stable at 1.18x and 0.75x in FY2025(prov). Strong debt protection metrics DSCR at 11.27x and ISCR at 15.16x up from 7.91x and 11.81x respectively, reflect minimal debt servicing pressures due to the absence of long-term borrowings. Acuité believes VIPL's prudent capital structure, high coverage ratios, and consistent net worth growth provide a solid foundation for continued financial stability and favourable credit positioning.

VIPL operates in a working capital-intensive environment, reflected in the stretch of Gross Current Asset (GCA) days to 424 day in FY2025 (Prov) from 330 day in FY2024 and 291 day in FY2023, primarily due to elongated debtor cycles. Debtors days surged to 372 day in FY2025 (prov) from 281 day in the prior year, attributable to milestone-based payment structures with its customers and increased year-end revenue recognition. Despite the extended cycle, Acuité believes recoveries to materialize given the company’s strong clientele and reliable payment history. The other current assets of Rs 20.81 crore also contributor to stretched GCA days which mainly includes retention money, advance to suppliers GST receivable etc. Creditor days stood at 184 days in FY2025 (prov), reflecting dependency on receivable realization. Acuite believes that the current nature of operations will entail high working capital requirements and the same will continue to be monitorable.