Rating Rationale
April 04, 2025 | Mumbai
JWR Logistics Private Limited
Rating reaffirmed at 'Crisil A/Stable'; Rated amount enhanced for Bank Debt
 
Rating Action
Total Bank Loan Facilities RatedRs.293.74 Crore (Enhanced from Rs.182.33 Crore)
Long Term RatingCrisil A/Stable (Reaffirmed)
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 A/Stable’ rating on the long-term bank facilities of JWR Logistics Private Limited (JWR; part of the JW group).

 

The rating continues to reflect the JW group’s strong business risk profile, backed by its established market position in container freight station (CFS) operations at the Jawaharlal Nehru Port Trust (JNPT), Mumbai, healthy relationships with customers, comfortable operating margin, efficient working capital cycle and robust financial risk profile. These strengths are partially offset by exposure to intense competition in CFS operations, vulnerability of revenue and profitability to global cargo movements and susceptibility to risks related to the ongoing capital expenditure (capex).

Analytical Approach

Crisil Ratings has combined the business and financial risk profiles of JWL with those of JWC Logistics Park Pvt Ltd (JWC), JWR Logistics Pvt Ltd (JWR), and LRK Logistics Pvt Ltd (LRK). This is because all the entities, collectively referred to as the JW group, have common management, and significant operational and financial linkages.

 

Unsecured loan of Rs 33.01 crore as on March 31, 2024, has been treated as debt. (The same is expected at Rs 46-47 crore as on March 31, 2025).

 

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 in the logistics industry: The promoters have experience of more than four decades in the logistics business, which has helped the group establish a strong market position in CFS operations and diversify its service offerings to also include transportation, warehousing and cold storage solutions. It has established strong market position in the CFS segment, driven by its key competitive advantages, including favourable import-export mix leading to better utilisation of container movement, and owning land and equipment. These factors, along with healthy relationships with major shipping lines and large corporates across India and abroad, have aided growth in revenue over the years. Extensive experience of the promoters and established market presence of the group has led to growth in revenue to Rs 541 crore in fiscal 2024 from Rs 216 crore in fiscal 2017 and is estimated to achieve more than Rs 630 crore in fiscal 2025. Revenue growth is likely to remain steady over the medium term in line with healthy demand and continuous addition of capacities over the years.

 

  • Healthy operating margin: JW group follows an asset-heavy model as it owns land and a fleet of trailers. This has helped the group save on rentals. Also, having its own land and equipment and a favourable import-export mix has helped the group improve utilisation of container facilities leading to better operating efficiencies. This is reflected in the healthy operating margin of above 31% over the four fiscals through 2024 and is expected at 31-33% over the medium term, driven by a favourable export-import mix and increasing revenue from the high-margin cold storage business.

 

  • Efficient working capital management: JW group's working capital cycle remained efficient with gross current assets (excluding cash) of 53-67 days over the past three fiscals. Receivables have remained at 37-42 days over the four fiscals through 2024, as the group deals with reputed customers from which payments are on time. This leads to low dependence on working capital debt.

 

  • Strong financial risk profile: Networth was robust at Rs 539 crore as on March 31, 2024, and estimated to be over Rs 630 crore a year later. Despite continuous debt-funded capex, the group’s capital structure was comfortable with gearing and total outside liabilities to adjusted networth (TOLANW) ratio of 0.95 time and 1.08 times, respectively, as on March 31, 2024. Despite continuous debt- funded capex and ongoing JNPT capex, the gearing and TOLANW ratio are expected at 0.80-0.85 time and 0.91-0.95 time, respectively, as on March 31, 2025. Debt protection metrics were comfortable with interest coverage and net cash accrual to adjusted debt ratios of 3.85 times and 0.24 time, respectively, in fiscal 2024 and expected at 4.6-4.8 times and 0.25-0.3 time, respectively, in fiscal 2025. Despite debt-funded capex, the financial risk profile is likely to remain comfortable over the medium term with healthy accretion to reserve and repayments of existing debt.

 

Weaknesses:

  • Exposure to intense competition in CFS operations at JNPT: The group's CFS operations are limited to JNPT and it faces intense competition not only from large CFS operators at the port (about 33) but also from those operating at other ports. The group's larger peers have presence at multiple ports and are either owned by or have affiliation with dedicated shipping lines. The increasing number of CFS operators leads to build-up of surplus CFS facility and has intensified price-based competition. Thus, intense competition may constrain the group's scalability and pricing power.

 

  • Vulnerability of revenue and profitability to cargo movements: The CFS business remains susceptible to risks arising from variations in shipping rates, trade volume, export-import trade and customs policies. As of now, JNPT commands a major share in the overall Indian port sector. However, increasing competition from newer ports at Mundra and Hazira, may adversely impact JNPT’s cargo volume and weaken revenue growth for the JW group.

 

  • Susceptibility to risks related to the ongoing capex: The group is currently undertaking a new JNPT project in JWR for setting up Ambient and cold storage warehouse with a capacity of 40,000 pallets and 26,500 pallets, respectively. The estimated cost of capex is Rs 200 crore for phase I, to be debt-funded to the extent of Rs 150 crore and likely to be completed over the next one year. The timely completion of this project with no major cost overruns and subsequent increase in revenue will be monitorable.

Liquidity: Strong

The group is expected to generate cash accrual of Rs 143-198 crore over the medium term, which should comfortably cover debt obligation of Rs 80-107 crore over the medium term. JW group’s fund-based limit (cash credit and overdraft) of Rs 18 crore was minimally utilised over the 12 months through January 2025. The group has unencumbered cash and equivalent of Rs 18 crore as on December 31, 2024. The group can hence fund its capex requirement and incremental working capital requirement through surplus internal accrual and unutilised bank limit.

Outlook: Stable

Crisil Ratings believes that the group’s business and financial risk profiles will continue to be strong and support the group’s credit profile.

Rating sensitivity factors

Upward factors:

  • Improvement in debt to earnings before interest, taxes, depreciation and amortization (Ebitda) ratio to below 1.75 times, strengthening the financial risk profile.
  • Sustained growth in revenue and profitability, leading to high cash accruals.

 

Downward factors:

  • Any large, debt-funded capex, leading to net debt to Ebitda ratio of more than 2.5 times.
  • Sharp decline in revenue and profitability, leading to low cash accurals.

About the Group

Incorporated in 2012, JWL offers cold storage solutions for perishable commodities and pharmaceutical products at JNPT.

 

JWC, incorporated in 2004, operates a CFS at JNPT, specialising in full container load cargo.

 

JWR, incorporated in 2010, operates a CFS at JNPT, specialising in less-than-container load cargo.

 

LRK, incorporated in 2018, has no business in the company.

 

The Mumbai-based group is promoted and managed by Lalit Jobanputra along with his son, Raj Jobanputra, and his daughter, Kruti Jobanputra. The group is managed by a professional second line of management.

Key Financial Indicators (Consolidated)

Particulars

Unit

2024

2023

Revenue

Rs crore

540.35

530.73

Profit after tax (PAT)

Rs crore

84.17

83.30

PAT margin

%

15.58

15.69

Adjusted debt/adjusted networth

Times

0.95

1.19

Interest coverage

Times

3.85

4.98

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
Crisil Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

Crisil Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the Crisil Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN Name Of Instrument Date Of Allotment Coupon Rate (%) Maturity Date Issue Size (Rs.Crore) Complexity Levels Rating Outstanding with Outlook
NA Overdraft Facility NA NA NA 3.00 NA Crisil A/Stable
NA Working Capital Facility NA NA NA 40.00 NA Crisil A/Stable
NA Long Term Loan NA NA 31-May-33 78.59 NA Crisil A/Stable
NA Long Term Loan NA NA 31-May-33 71.41 NA Crisil A/Stable
NA Term Loan NA NA 30-Sep-28 33.76 NA Crisil A/Stable
NA Term Loan NA NA 30-Nov-29 12.08 NA Crisil A/Stable
NA Term Loan NA NA 30-Sep-28 21.38 NA Crisil A/Stable
NA Term Loan NA NA 31-Mar-31 33.52 NA Crisil A/Stable

Annexure – List of entities consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

JWL Cold Store Private Limited

Full

Common management team, with significant operational and financial linkages

JWR Logistics Private Limited

Full

JWC Logistics Park Private Limited

Full

LRK Logistic Private Limited

Full
Annexure - Rating History for last 3 Years
  Current 2025 (History) 2024  2023  2022  Start of 2022
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 293.74 Crisil A/Stable   -- 13-03-24 Crisil A/Stable   -- 04-11-22 Crisil A-/Positive Crisil A-/Stable / Crisil A2+
      --   -- 01-02-24 Crisil A/Stable   -- 07-03-22 Crisil A-/Positive / Crisil A2+ --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Long Term Loan 78.59 HDFC Bank Limited Crisil A/Stable
Long Term Loan 71.41 HDFC Bank Limited Crisil A/Stable
Overdraft Facility 3 Axis Bank Limited Crisil A/Stable
Term Loan 33.76 Axis Bank Limited Crisil A/Stable
Term Loan 12.08 Bajaj Finance Limited Crisil A/Stable
Term Loan 21.38 Kotak Mahindra Bank Limited Crisil A/Stable
Term Loan 33.52 Axis Finance Limited Crisil A/Stable
Working Capital Facility 40 HDFC Bank Limited Crisil A/Stable
Criteria Details
Links to related criteria
Basics of Ratings (including default recognition, assessing information adequacy)
Criteria for manufacturing, trading and corporate services sector (including approach for financial ratios)
Criteria for consolidation

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