Key Rating Drivers & Detailed Description

Strengths:
Established market position: The group is one of the world’s leading and experienced players in the WRP and WRC segments. The product profile is wide and includes both mill and non-mill products such as grinding mills, wear components, screens, trommels conveyors, chute liners, pump liners and hydro cyclones. Demand is highly stable, with 70-75% of revenue coming from repeat orders. The group has grown both organically and inorganically in the recent past. Income is geographically diversified, with foreign exchange-denominated revenue accounting for 80-85% of sales. Its latest product -- Dynaprime -- in the mill liner segment has been a success in South America and was a revenue driver for the Chilean subsidiary. The product also got good traction from Africa, North America, Asia Pacific, EMEA and Europe.

Market position is expected to improve further with ramp up of TMML. The equipment business has enabled TIL to position itself as an integrated player offering equipment as well as consumables to its customers. However steady ramp up of equipment business continues to be a key monitorable.

Strong financial risk profile: Networth remains healthy at Rs 1,325 crore and gearing at 0.18 time as on March 31, 2025. Debt protection metrics were also robust, as reflected in interest coverage ratio of more than 14 times in fiscal 2025. The group incurred a capex of Rs 154 crore in fiscal 2025 on annual maintenance capex and ongoing capex on the Chile project, which was delayed because of various approvals. Over the next two years, the group expects to incur a capex of Rs 220-230 crore on the Chile plant. About 70% of this funding will be through debt. Additionally, TIL plans to spend Rs 30 crore on debottlenecking for the Dahej plant (in Gujarat) during fiscal 2026. The group also anticipates incurring an annual maintenance capex of Rs 70-80 crore over the medium term. This will be funded through internal cash accrual and cash surplus

Weaknesses:
Large working capital-intensive operations: Gross current assets (GCAs; net off cash) increased to 246 days as on March 31, 2025, and may remain at similar levels due to the export-oriented nature of operations. 80-85% of sales from India is exports, which has an inherent transit period of 60-90 days and additional 30-60 days of credit period. Hence, on an overall basis, debtors amount to 3-4 months from time of dispatch.

Exposure to risks relating to aggressive growth through acquisitions and capex: The group has grown inorganically in the past through acquisitions outside India. Overseas subsidiaries play a significant part in its performance and contribute 35-40% to total sales. The group has also planned capex of Rs 250-300 crore over the medium term (partly funded through debt) to improve capacities in Chile and annual maintenance of existing plants. Thus, organic and inorganic growth remain a key monitorable.

Key Financial Indicators

Annexure - Details of Instrument(s)

* Fully interchangeable with export packing credit, packing credit in foreign currency, postshipment in foreign currency, working capital demand loan and bill discounting, letter of credit, bank guarantee, and buyer's credit
@ Fully interchangeable with letter of credit, bank guarantee, and buyers' credit

Annexure – List of entities consolidated

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