| QVC Exports 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 QVC Exports Ltd (QEL; part of the QVC group).
The ratings continue to reflect the extensive experience of the promoters in the metals and minerals trading business and the moderate capital structure of the group. These strengths are partially offset by its below average debt protection metrics, working capital-intensive operations and modest operating margin due to the trading nature of business. |
Analytical Approach For arriving at the ratings, Crisil Ratings has combined the business and financial risk profiles of QEL, QVC International Pvt Ltd (QIPL) and Matashree Mercantile Pvt Ltd (MMPL) as all the companies, together referred to as the QVC group, are under the same management and operate in the same industry. |
Key Rating Drivers - Strengths Extensive industry experience of the promoters: The promoters have experience of over a decade in trading in metals and minerals in both, the domestic and international markets. This has helped them understand market dynamics and build strong relationship with key suppliers and customers. As a result, the group achieved revenue of over Rs 470 crore in fiscal 2025 and around Rs 250 crore in the first half of fiscal 2026, despite declining ferroalloy realisations. The extensive experience of the promoters should continue to support the business risk profile over the medium term.
Moderate capital structure: The group’s capital structure is moderate, with networth at Rs 70.54 crore as on March 31, 2025 (Rs 24 crore raised by way of initial public offer by QEL in fiscal 2025) and gearing and total outside liabilities to adjusted networth (TOLANW) ratio at 1.60 times and 2.17 times, respectively. Debt largely comprises fund-based working capital limits, with minimal long-term debt. The capital structure is expected to improve over the medium term in the absence of any major debt-funded capital expenditure plan. |
Key Rating Drivers - Weaknesses Below average debt protection metrics: The debt protection metrics of the group have been below average with interest coverage and net cash accrual to adjusted debt ratio at 1.71 times and 0.10 time, respectively, for fiscal 2025. Improvement in the debt protection metrics will remain monitorable.
Working capital-intensive operations: Operations are working capital intensive, as reflected in gross current assets (GCAs) of ~120 days, comprising inventory and receivables of ~15 days and 60 days, respectively, as on March 31, 2025. The same results in reliance on external debt. Working capital intensity is expected to sustain over the medium term.
Modest operating margin due to the trading nature of business: The small initial investment and low complexity of operations have resulted in existence of innumerable entities, much smaller in size. The resultant intense competition constrains the operation profitability. However, the QVC group has changed its business model by increasing the share of orders with fixed margins to around 50% of sales, resulting in operating margin of over 4.4% in fiscal 2025 against over 2% in the previous fiscal. Sustenance of improved profitability will remain monitorable. |
Liquidity Stretched Bank limit utilisation at the group level was under 80% over the 12 months through October 2025, albeit with instances of utilisation of 88-92%. Annual cash accrual is expected over Rs 9 crore against yearly term debt obligation of ~Rs 1 crore over the medium term, and the surplus will cushion liquidity. Current ratio was moderate at 1.08 times on March 31, 2025. |
Outlook Stable Crisil Ratings believes the QVC group will continue to benefit from its longstanding relationship with principal suppliers and the experience of the management will help mitigate the inherent risks in the trading business. |
Rating sensitivity factors Upward factors
Downward factors
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About the Group QEL was incorporated in 2005 as QVC Exports Pvt Ltd and was reconstituted as a public limited company with the current name in 2022. QEL trades in a variety of metals and minerals such as iron, steel, ferroalloys, copper, nickel, aluminium, manganese ore, coal and coke.
QIPL was incorporated in 2007 as Shine Tieup Pvt Ltd and got its present name in 2011. QIPL imports and exports ferroalloys, ferro manganese, ferro silicon, ferro chrome, silico manganese, and other such products.
MMPL was incorporated in 2006 and trades in ferroalloys.
Based in Kolkata, the QVC group is promoted by Mr Nilesh Kumar Sharma (managing director). |
Key Financial Indicators
*Provisional financials; #Crisil-adjusted |
Status of non cooperation with previous CRA: QEL has not cooperated with Acuite Ratings and Research Limited, which has classified the company as non-cooperative vide release dated July 19, 2024. The reason provided by Acuite Ratings and Research Limited is non-furnishing of information for monitoring the ratings. |
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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* - Issuer did not cooperate; based on best-available information
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||
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Criteria Details
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