| Murudeshwar Ceramics Limited | ||||||
| Ratings reaffirmed at 'Crisil BB / Stable / Crisil A4+ ' | ||||||
| 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 BB/Stable/Crisil A4+’ ratings on the bank facilities of Murudeshwar Ceramics Limited (MCL).
Liquefied Natural Gas (LNG) and propane are key raw materials for manufacturing ceramic tiles, which make up 35% of the cost of goods sold. Since the onset of the West Asia conflict, supply of these raw materials has been disrupted. Notably, 60–65% of LNG and propane imports come from the Middle East. The Government of India has notified the Natural Gas (Supply Regulation) Order (NGS order) on March 9, 2026. As the ceramic sector falls under the categorization of priority sector III, supplies of natural gas have been restricted to 80% of each player’s average consumption for the preceding six months. Further government action in this regard remains monitorable.
The ratings continue to reflect the established market position and moderate financial risk profile of MCL. These strengths are partially offset by moderate scale of operations with exposure to intense competition and large working capital requirement. |
Analytical Approach Crisil Ratings have consolidated the business and financial risk profile of MCL and it’s associate – RNS Power Private Limited proportionate to the extent of holding of MCL (26.10%) in the entity as these entities have significant operational and financial interlinkages.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Established market position and product diversity: The company manufactures glazed ceramic floor tiles, vitrified porcelain and is one of the leading players in South India. Products are marketed under the Naveen brand, with sales directly to real estate entities and through retail sales channels. This has resulted in healthy relationships with customers and suppliers. Crisil Ratings believes MCL will continue to benefit from its established market position and product diversity over the medium term.
Comfortable financial risk profile: Networth and gearing are estimated to be strong at around Rs 376 crore and 0.30 time, respectively as on March 31, 2026. Healthy accretion to reserve owing to moderate profitability is expected to support capital structure over the medium term. Debt protection metrics were robust, with estimated interest coverage and net cash accrual to adjusted debt ratios of 3 times and 0.20 time, respectively, in fiscal 2026. |
Key Rating Drivers - Weaknesses Modest scale of operations: With revenue of Rs 207 crore in fiscal 2025, scale remains moderate and is estimated to remain at a similar level in fiscal 2026 as well. The company faces intense competition from other organised players in the ceramic and vitrified tiles industry, such as H&R Johnson (India) Ltd, Somany Ceramics Ltd, and Nitco Tiles Ltd, as well as from unorganised and Chinese manufacturers.
Large working capital requirement and exposure to intense competition: Gross current assets remain high at 291 days, driven by high receivables and inventory levels of 73 days and 236 days, respectively, as on March 31, 2025. Liquidity is expected to remain constrained due to large working capital requirement. |
Liquidity Adequate Bank limit utilisation was around 91.26% for the 12 months through March 2026. Cash accrual is expected to be Rs 20-32 crore against term debt obligation of Rs 12-15 crore per annum over the medium term. Current ratio was moderate at 1.3 times as on March 31, 2025. |
Outlook Stable Crisil Ratings believes MCL will continue to benefit from its established market position in South India and support from its promoters. |
Rating sensitivity factors Upward Factors:
Downward factors:
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About the Company Incorporated in 1983, MCL is a publicly listed company promoted by Mr R N Shetty and his family members. It manufactures glazed ceramic floor tiles, vitrified porcelain, and natural granite slabs, which are marketed under the Naveen brand |
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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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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