| Jeyyam Global Foods Limited | ||||
| Rating downgraded to 'Crisil BBB-/Stable'; Rating Withdrawn | ||||
| 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 downgraded its rating on the long-term bank facilities of Jeyyam Global Foods Limited (JGFL) to ‘Crisil BBB-/Stable’ from ‘Crisil BBB/Stable’ and has subsequently withdrawn the ratings at the firm’s request and on receipt of no-dues certificate for cash credit and long-term loan facilities of Rs. 20 crores and Rs. 11 crores respectively and no objection certificate for cash credit facility for Rs. 45 crores. The withdrawal is in line with the Crisil Ratings policy on withdrawal of bank loan ratings.
The rating action factors in the deterioration in liquidity profile of the company, with stretch in working capital cycle with gross current asset (GCA) days increasing from 64 days in fiscal 2024 to 81 days in fiscal 2025, primarily due to increase in debtors’ receivables period from 22 days to 45 days during the fiscal. With closure of working capital limits in HDFC Bank in Feb-2025, bank limit utilization was high at 98% in the last 10 months ended Dec-2025.
Business risk profile is marked by muted revenue growth expected in fiscal 2026, due to lower price realisations. Improvement in revenue profile with sustenance of operating margins at similar levels of 5-5.5%, leading to generation of net cash accruals coupled with periodic collections from debtors, sufficient to meet timely repayment obligations, remains a key monitorable. The rating reflects JGFL's extensive industry experience of the promoters, efficient working capital cycle and its healthy financial profile. These strengths are partially offset by its susceptibility to climatic conditions, volatility in raw material prices, susceptibility to intense competition due to lower value addition and geographical concentration in revenue profile. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of JGFL. |
Key Rating Drivers - Strengths Extensive industry experience of the promoters: Mr. Shirpal Sanghvi possess 36 years’ experience as FMCG distributor in Tamil Nadu region. While Mr. Amit Agarwal also possess extensive experience in the segment. This has given them an understanding of the dynamics of the market and enabled them to establish relationships with suppliers and customers. Healthy financial risk profile: Debt protection metrics is comfortable as reflected in interest coverage ratio and net cash accruals to adjusted debt ratio of 4.59 times and 0.38 times in fiscal 2025. Capital structure was moderate, marked by gearing of 0.43 times and total outside liabilities to tangible networth (TOL/TNW) ratio of 0.53 times as on March 31, 2025. |
Key Rating Drivers - Weaknesses Susceptibility to climatic conditions and volatility in raw material prices: The crop yield of agricultural commodities is dependent on adequate and favorable climatic conditions. Thus, JGFL is exposed to the risk of limited availability of its key raw material during a unfavorable climatic condition. Also, production may be impacted by pests or crop infection leading to higher unpredictability in production and pricing of agri commodities and derived products. Susceptibility to intense competition due to lower value addition along with geographical concentration in revenue: The bengalgram processing industry is intensely competitive with low entry barriers due to low capital requirement. More than 80% of the revenue are from Tamil Nadu. Hence, the business is likely to remain exposed to geographical concentration risk. In the last three fiscals, company has diversified into other geographies like Karnataka and Andhra Pradesh and plans to further diversify into other geographies and same will remain a key monitorable. |
Liquidity Stretched Bank limit utilization is high at around 82 percent for the past twelve months ended Dec-2025, with peak utilization of 98% for the last ten months. Net cash accruals are expected to be over Rs. 25 crore per annum which are sufficient against term debt obligation of Rs. 2-3 crore per annum over the medium term.
Current ratio is moderate at 2.66 times on March 31, 2025 |
Outlook Stable Crisil Ratings believe JGFL will continue to benefit from the extensive experience of its promoter, and established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company Incorporated in 2008, JGFPL, (erstwhile known as Kichoni Online Services Private Limited) , produces and processes bengalgram (locally known as ‘chana'), fried gram, and besan flour and supplies and market it under brand name “Jeyyam”. JGFPL has two manufacturing facilities one is located in Devattipatti Unit (Tamil Nadu) and other at Jammalamudugu – Karmalavari Palli Unit (Andhra Pradesh). JGFPL is listed on the SME Platform of the National Stock Exchange of India Limited. It is promoted by Mr. Amit Agarwal and Mr. Shripal Veeramchand Sanghvi. |
Key Financial Indicators
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Status of non cooperation with previous CRA: |
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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