| Dhabriya Polywood Limited | ||||
| Rating reaffirmed at 'Crisil BBB/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 BBB/Stable’ rating on the long-term bank facilities of Dhabriya Polywood Limited (DPL; a part of the Dhabriya group).
The rating continues to reflect the group’s established market position, driven by the extensive experience of the promoters in manufacturing polyvinyl chloride (PVC) products, along with diversified customer and products portfolios and comfortable financial risk profile. These strengths are partially offset by exposure to volatility in raw material prices and cyclicality in the end-user industry. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of DPL along with its subsidiaries -- Dynasty Modular Furnitures Private Limited (DMFPL), Polywood Profiles Private Limited (PPPL) and Polywood Green Building Systems Private Limited (PGBSPL). These companies are collectively referred to herein as the Dhabriya group.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers & Detailed Description Strengths: Established market position and extensive experience of the promoters: The group has moderate scale, which provides it operating flexibility in an intensely competitive industry. Further, the promoters have more than three decades of experience in manufacturing PVC products; their strong understanding of market dynamics and healthy relations with customers and suppliers will continue to support the business.
Diversified customer and product portfolios: The group caters to clients, including fabricators and real estate companies that use extruded PVC profile sections, Dstona sheets & moldings and unplasticised PVC (uPVC) profiles to make doors, windows, interiors, various furnishing and furniture applications. The group has an extensive network of 800+ dealers/distributors across India. Diversity in geographic reach and client and product bases should continue to support the business risk profile.
Comfortable financial risk profile: The group has healthy capital structure, with networth estimated at more than Rs 100 crore, gearing at 0.6-0.7 time and total outside liabilities to adjusted networth ratio at 0.7-0.8 time as on March 31, 2025. Debt protection metrics may continue to be strong due to lower leverage and steady profitability. Interest coverage ratio is estimated at above 8 times and net cash accrual to total debt ratio at 0.6 time for fiscal 2025.
Weaknesses: Exposure to volatility in raw material prices: Raw materials such as uPVC powder, PVC resin, stabilisers, impact modifiers and additives account for 50-55% of the total cost of sales. Therefore, even a slight variation in price can drastically impact the operating margin and remain as a key rating sensitivity factor.
Susceptibility to cyclicality in end-use industry: PVC and uPVC profiles are used in manufacturing windows and doors, sales of which depends on the real estate sector that is in turn linked to the performance of the economy and hence cyclical. Competition from substitute products can also pose a threat to the demand of PVC and uPVC profiles. |
Liquidity: Adequate Cash accrual is projected at more than Rs 27 crore per annum, against yearly debt obligation of Rs 8 crore over the medium term; the surplus cash will act as a cushion to liquidity. Bank limit utilisation stood at around 93% for the 12 months through November 2024. Current ratio was healthy at 1.51 times on March 31, 2024. The promoters are also likely to extend need-based funds (equity and unsecured loans) to support operations. |
Outlook: Stable The Dhabriya group will continue to benefit from the extensive experience of its promoters and their established relationship with clients. |
Rating Sensitivity Factors Upward factors
Downward factors
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About the Dhabriya Group DPL was initially incorporated in 1992 as Dhabriya Agglomerates Private Limited and got reconstituted into a public limited company with its present name. Its shares got listed on the Bombay Stock Exchange in 2014. The company is engaged in manufacturing and fabricating extruded PVC profile sections, Dstona sheets and moldings, uPVC windows and doors, modular furniture products for various furnishing and furniture applications. DPL has three manufacturing units, of which two are in Sitapura and Malviya Nagar (both in Jaipur; Rajasthan) and one at Bengaluru. It is headed by Mr Digvijay Dhabriya (chairman and managing director) along with other directors.
Established in 1995, DMFPL is a wholly owned subsidiary of DPL. It manufactures modular kitchen, wardrobes, home furniture, office furniture and doors, and various furnishing and furniture applications.
Incorporated in 2005, PPPL is a wholly owned subsidiary of DPL. It manufactures uPVC profiles and PVC profile products.
Established in 2012, PGBSPL is engaged in trading and wholesale business of uPVC products, extruded PVC profiles and modular furniture products. DPL holds 99% stake in PGBSPL. |
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 - List of Entities Consolidated
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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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