04 Jan 2021

Isotex Corporation Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs.10.00 Crs. of Isotex Corporation Pvt. Ltd.

Facility** Amount (Rs.Crs) Tenure Rating*
Fund Based
Over Draft 07.00 Long Term BWR BB - (Stable)
Sub Total 07.00
Non-Fund Based
Bank Guarantee 03.00 Short Term BWR A4
Sub Total 03.00
Grand Total 10.00 (Rupees Ten Crores Only)
*Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank facilities are provided in Annexure-I

BWR believes that Isotex Corporation Pvt. Ltd. business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenues and profit show sustained improvement. The rating outlook may be revised to 'Negative' if the revenues go down and profit margins show lower than expected figures.



• Established operational track record and experienced management:

Isotex Corporation Pvt. Ltd was set up in 2012 in Ahmedabad. Currently headed by Karan Rajeshbhai Vadodaria, Siddharth RajeshbhaiVadodaria. Have around more than a decade of experience in industry. Company is backed by experienced management that has been able to manage healthy relations with reputed clients.

• Healthy financial risk profile:

The total debt of Rs. 10.00 crore mainly consists of an overdraft limit of Rs. 7.00 crore. Debt protection metrics remained healthy as the interest coverage ratio (ICR) stood at 4.21 & DSCR 2.91 for FY 19-20. TOL/TNW stood comfortable at 1.88 times as of 31 March 2020 as compared to 2.00 times in the previous year. Going forward, gearing is expected to remain comfortable in the medium term on account of the absence of external borrowings.

• Healthy Order Book position :

ICPL has a healthy order book of Rs.20.00 crore as of December 2020 which assures revenue visibility in the near to medium term.


• Uneven Revenues:

Isotex Corporation Pvt. Ltd has recorded an operating income of Rs.36.61 crore in FY2020 as against the operating income of Rs.52.13crore in FY2019 and Rs.50.83 crore in FY2018. Further, the company has already registered sales of Rs.25.00 crore from April  2020 to November 2020.

• Foreign Exchange Risk:

The company has around 35% of its revenues coming from exports to countries like Bangladesh, Dubai, Sri Lanka, South Asia, and Africa. This exposes the margins of the company to foreign exchange risk. However, as informed by management the company adopting forex hedging to mitigate exchange rates risk. 

• Exposure to cyclical vagaries of end-user industries:

Weak demand environment and investment climate have led to a slump in orders in fiscal 2020, from many of the end-user industries as company have increasingly shelved expansion plans. Besides, shut down of the manufacturing operations across India since Dec-2019 owing to the COVID-19 outbreak, will also have a bearing on the order execution in the near term. However, the company is dealing in various industries, such as  Textile, Pharma, FMCG, Chemical, Paper, Constructions, Renewal Energy, and thus diversifying its exposure across sectors and market segments.  


For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).


Going forward, the ability of the company to scale up its operations and to improve its profit
margins while maintaining its gearing at low would be the key rating sensitivities.

Positive: The rating may be positively revised if there is further growth in revenue and profit
margins while maintaining a healthy overall financial profile.

Negative: The rating may be adversely affected if there is deterioration in capital structure, profit
margins and any delays in payment of its debt obligations.


The company's liquidity position is adequate with a current ratio of 1.25 times in FY19-20 as against 1.21 times in FY18-19. The cash andcash equivalents of the company were good at Rs. 3.14 Crores as on 31 March 2020 as against Rs.0.61 Crores as on 31 March 2019.


Isotex Corporation Pvt Ltd established in 1978 as a partnership firm & later in 2012 constitution has been changed to Pvt Ltd. Company is based in Ahmedabad.  Leader in design and engineering of Oil & Gas Fired Steam Boiler, Solid Fuel Fired Thermic Fluid Heaters, Thermo Steam generator with over 10 design patents to its credit. Has till date over 7000+ unit installations. Isotex Corporation Pvt Ltd offers to the market heating technologies for the highest fuel efficiency, time and again isotex has demonstrated its performance capabilities. Four manufacturing facilities spread over total area of 60,000 Sqm at various locations. State-of-the-art manufacturing processes with imported machines for production assuring quality matching European standards. Expertise in the handling of over 100 types of fuels including various Agro- Waste.

The company provides services all over India and also majorly exports in countries like Bangladesh, Dubai, Sri Lanka, and South Asia & Africa. The directors of the company are Mr.Karan Rajeshbhai Vadodaria and Mr.Siddharth Rajeshbhai Vadodaria.

Key Parameters Units FY 19-20
FY 18-19
Operating Revenue Rs.Crs. 37.20 53.15
EBITDA Rs.Crs. 3.62 4.65
PAT Rs.Crs. 1.37 1.69
Tangible Net Worth Rs.Crs. 10.41 9.10
Total Debt/Tangible Net Worth Times 0.75 1.36
Current Ratio Times 1.25 1.21

S.No Current Rating (2020) Rating History
Facilities Tenure Amount (Rs.Crs) Rating 2019 2018 2017
Fund Based
Over Draft
Long Term
Non-Fund Based
Bank Guarantee
Short Term
Total 10.00 (Rupees Ten Crores Only)

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

For More Information Contact:
Analytical Contacts

Urvi Shah

Rating Analyst urvi.s@brickworkratings.com

Dileep Narayan Singh

Director Ratings dileep.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Isotex Corporation Pvt. Ltd.
Details of Bank Facilities rated by BWR
SL.No. Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Over Draft 7.00 _ 7.00
2 Bank Guarantee _ 3.00 3.00
Total 7.00 3.00 10.00
TOTAL (Rupees Ten Crores Only)

InstrumentIssue DateAmount (Rs.Crs)Coupon RateMaturity DateISIN Particulars

List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation

Additional information is available at www.brickworkratings.com The ratings above were solicited by,or on behalf of , the issuer, and therefore, Brickwork Ratings has been compensated for the provision of the ratings.
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Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

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