­Long operational track and experienced management
WIPL was incorporated in 1997 and has a long operational track record of more than two decades in the cast iron and ductile iron manufacturing business. The promoters Mr. Ankit Kejriwal and family manages the operations of the company along with adequate support from a set of key professionals. The company has an exposure in 20 countries where orders came mainly from USA and Canada, and it has also acquired new customers from Qatar, Saudi Arabia and South Africa during FY25 (Prov.). Acuité believes that the long track record of operations and the extensive experience of the promoters will continue to benefit the company going forward.

Increase in operating income during FY25
WIPL has achieved an operating income of Rs. 97.54 Cr. in FY25 (Prov.) as against Rs. 74.41 Cr. in FY24. The growth was due to an increase in sales volume with better price realizations. The order in hand comprises  of ~Rs.40.00 Cr. as on July 2025 which will be executed within 4 months with a rolling pipeline of new orders. The price of ductile iron is ~40% higher than gray cast iron. Further, the company has reported revenues of Rs.25.00 Cr. till Q1FY26. Acuite believes that the scale of operations will improve over the medium term backed by order flow and favourable opportunities for the industry.

Susceptibility of profitability margins to raw material price fluctuations and forex
The EBITDA margin stood at 7.16% in FY25 (Prov.) as against 8.09% in FY24. The decline was due to increased raw material costs and increase in rates & taxes for shipment to Canada which formed ~30 % of revenues during the year. The PAT margin stood at 1.04% in FY25 (Prov.) as against 1.03% in FY24. The company's profitability is supported by non-operating income; in the absence of the same it would be at negative PBT. Forex fluctuations would remain a key monitorable factor. Acuite expects that the margins to remain on similar levels over the medium term backed by fluctuations in forex and raw material costs. 

Below Average Financial Risk Profile
The company has a below average financial risk profile marked by increase in net worth, high gearing and average debt protection metrics. The tangible networth stood at Rs.13.30 Cr. as on March 31, 2025 (Prov.) as against Rs.11.70 Cr. as on March 31, 2024, due to accretion of reserves and infusion of equity. There was a fresh equity infusion of Rs. 0.60 Cr. in FY25 (Prov.) and company has plans to further infuse equity in the business for debt repayment and working capital requirements over the medium term.
The gearing stood high at 2.41 times in FY25 (Prov.) against 2.32 times in FY24. The company has undertaken external debt for installation of new machines for effective production and cost reduction. TOL/TNW ratio stood at 3.52 times in FY25 (Prov.) as against 3.41 times in FY24. The interest coverage ratio and debt service coverage ratio stood at 1.57 times and 0.94 times as on March 31, 2025 (Prov.) in line with 1.55 times and 0.94 times respectively as on March 31, 2024. The debt repayments were met out of the equity infusion by the Company. Acuite believes that the company’s financial risk profile will remain at similar levels backed by steady cash accruals and expected equity infusion plans albeit weak debt protection metrices over the medium term.

­Intensive Working Capital Cycle
The company has an intensive working capital cycle as reflected by Gross Current Assets (GCA days) of 170 days in FY25 (Prov.) as against 192 days in FY24. The debtor days stood at 48 days in FY25 (Prov.) as against 46 days in FY2024, due to collection period of minimum 90 days. The company ship their products by water, and it reaches to the customers in an average of 60-70 days. The bank discounts the bills within 15 days. The inventory days stood improved to 97 days in FY25 (Prov.) as against 125 days in FY24 due to efficient planning of raw materials. The creditor days stood at 23 days in FY25 (Prov.) as against 46 days in FY24. The credit terms of suppliers are 30-45 days. Acuite believes that working capital requirements are expected to remain at similar levels over the medium term.