| Ashapura Calcine And Refactories LLP | ||||
| Rating reaffirmed at 'Crisil B/Stable' | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil B/Stable' rating on the long-term bank facilities of Ashapura Calcine and Refactories LLP (ACRLP).
The rating reflects stable operating performance, as indicated by estimated revenue of Rs 23 crore in fiscal 2025. The operating margin fluctuated widely from 2.77% in fiscal 2024 to 7.80% in fiscal 2025 on account of fluctuation in raw material prices. The working capital cycle is stretched with estimated gross current assets (GCAs) of 229 days driven by debtors of 132 days and inventory of 71 days in fiscal 2025 due to dependence on mining. It is supported by payables of 284 days.
The rating continues to reflect vulnerability to modest scale of operations and large working capital requirement. These weaknesses are partially offset by the extensive experience of the promoters in the industrial machinery and consumables industry. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of ACRLP. Unsecured loan of Rs 4.57 crore, as on March 31, 2024, has been treated as debt as it will be repaid over the medium term. |
Key Rating Drivers & Detailed Description Weaknesses: Large working capital requirement: GCAs have been 229 days for the two fiscals through 2025, driven by inventory of 70-75 days and debtors of 130-133 days. The working capital cycle is supported by credit of 284 days provided by the suppliers. With similar operating policies expected to continue, the working capital requirement should continue to remain at similar levels over the medium term.
Modest financial risk profile: The capital structure is constrained by estimated networth of Rs 2.63 crore as on March 31, 2025 (against Rs 1.61 crore a year ago). Total outside liabilities to adjusted networth (TOLANW) ratio stood high at 7.88 times (15.73 times as on March 31, 2024) driven by high payables. Gearing also remains high at 1.95 times in fiscal 2025 (2.92 times in fiscal 2024). Sustained improvement in the financial risk profile remains a key monitorable over the medium term.
Strength: Extensive experience of the promoters: The promoters have more than 10 years’ experience in the industrial machinery and consumables industry. This has given them a strong understanding of the market dynamics and enabled them to establish healthy relationships with suppliers and customers, which will continue to support the business. |
Liquidity: Stretched In the absence of any yearly maturing debt over the medium term, the net cash accrual -- expected at Rs 1.36 crore per annum –will cushion liquidity. The current ratio remained modest at 0.9 time as on March 31, 2025. Need-based funding support from the promoters is likely to continue. |
Outlook: Stable Crisil Ratings believes ACRLP will continue to benefit from the extensive experience of its promoters and established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company Set up in 2017 as a limited liability firm, ACRLP manufactures calcine clay. Its manufacturing facility is in Bhachau, Gujarat, with installed capacity of 3,750 metric tonne per month.
The firm is owned and managed by Mr Hareshkumar Mohanlal Rajyaguru and Mr Rajpalsinh Sahadevsinh Gohil. |
Key Financial Indicators
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Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||
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Criteria Details
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