Brickwork Ratings assigns the long-term ratings of BWR BB+/Stable ratings for the Bank Loan Facilities of Rs. 63.41 Crs. of AGP Oils Pvt. Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 63.41 | Long Term |
BWR BB +
/Stable Assignment |
|
| Grand Total | 63.41 | (Rupees Sixty Three Crores and Forty One lakhs Only) | ||
Brickwork Ratings assigns the long term ratings of BWR BB+/Stable for the bank loan facilities of Rs.63.41crs of AGP Oils Pvt. Ltd.
The rating has factored, inter alia, the experienced management with long track record of operations and Improved scale of operations. However, the rating is constrained by Intense competition, raw material price fluctuation risk and high degree of revenue concentration. Going forward, the ability of the company to improve their operational scale, profitability and credit profile would be the key rating sensitivities.
The rating outlook has been assigned as "Stable" as BWR believes that AGP Oils 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 revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.
Credit Strengths:
The promoters extensive experience of over three decades in the industry has equipped them with a profound understanding of market dynamics and fostered strong relationships with both suppliers and customers. Additionally, their ability to provide timely and need-based financial support will help the company to withstand adverse business cycles.
The company's total operating income increased to Rs.384.12cr in FY25 from Rs. 258.43cr in FY24. PAT has increased to Rs. 2.87cr in FY25 compared to Rs.1.82cr in FY24. The tangible net worth of the company stood at 18.38cr in FY25 increased from Rs.15.51cr in FY24 and Rs. 13.69cr in FY23. The net margin slightly improved to 0.75% in FY25 from 0.70% in FY24. The current ratio and ISCR stood at 1.32x and 1.59x in FY25.
The edible oil industry comprises a few big players and many small, unorganised players catering to regional demand. The Indian edible oil industry is largely price-sensitive, with players catering primarily to regional demand to avoid high marketing and distribution costs. Lower absorption of marketing costs or inability to pass on raw material price increase might exert pressure on the operating margins of players.
The major raw material for the company is soyabean seeds. Currently, the company procures key raw material i.e., soyabean seeds from local farmers/traders/commission agents. Any shortfall in raw material availability may impact raw material prices which can accordingly affect profit margins.
The single customer accounted for 57.89% of the total revenue of Rs. 384.12cr in FY25. This indicates a significant dependency on a customer base exposing the company to concentration risk.
BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.
RATING SENSITIVITIES
Positive :
Negative :
Tightly matched accruals to repayment obligations, with highly utilized bank limits and modest cash reserves. In FY25, the company reported net cash accruals of Rs. 4.12cr against the current debt maturity of Rs. 6.11cr. Looking forward, the company projected net cash accruals of Rs. 6.54cr in FY26 and Rs. 10.17cr in FY27 against term loan repayments of approximately Rs. 6.42cr in FY26 and Rs. 4.32cr in FY27 ensuring sufficient coverage for debt servicing. The Cash and Bank Balance were at ~Rs. 0.13cr in FY24 and Rs. 0.14cr in FY25. The OPBDIT of Rs.9.74cr in FY24 and Rs. 12.26cr in FY25 was sufficient to cover the finance charges of Rs.6.59cr in FY24 and Rs. 7.70cr in FY25. Current ratio stood at 1.32 times as on 31 March 2025 (FY24 : 1.34 times). Debt protection metrics ISCR and DSCR of the company stood at 1.48x and 0.82x in FY24 and 1.59x and 0.88x in FY25. Additionally, the fund-based utilization limit remained at approx 97% over the past 5 months.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Fast Moving Consumer Goods | Fast Moving Consumer Goods | Agricultural Food & other Products | Edible Oil |
AGP Oils Private Limited was registered with Registrar of Companies, Hyderabad, as a private limited company, in March, 2019, under the Companies Act, 2013. The Main objects of the Company are to carry on the business of manufacturing, extracting, delinting, processing, refining, importing, exporting, cultivating, purchasing, selling or otherwise dealing in all kinds of edible oils, oil seeds, oil cakes etc. The Company’s registered office is located at Sy.No.74/2, Alipur village Zaheerabad Mandal, Sangareddy District – 502318, Telangana State.
| Key Parameters | Units |
FY 22 - 23 (Audited - Annual) |
FY 23 - 24 (Audited - Annual) |
FY 24 - 25 (Audited - Annual) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 265.79 | 258.43 | 384.12 |
| EBITDA | Rs.Crs. | 7.32 | 9.74 | 12.26 |
| PAT | Rs.Crs. | 2.05 | 1.82 | 2.87 |
| Tangible Net Worth | Rs.Crs. | 13.69 | 15.51 | 18.38 |
| Total Debt / Tangible Net Worth | Times | 3.05 | 3.04 | 3.15 |
| Current Ratio | Times | 1.38 | 1.34 | 1.32 |
The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities.
Not Applicable
ANY OTHER INFORMATIONNil
RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2025) | 2024 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 63.41 |
BWR BB+/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 63.41 | (Rupees Sixty Three Crores and Forty One lakhs Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Harish R Ratings Analyst harish.r@brickworkratings.com |
Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | Customer Support | CustSupport@brickwrokratings.com |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| 1 | SIDBI | Term LoanOut-standing | 1.59 | _ | 1.59 | Simple## |
| 2 | SIDBI | Term LoanOut-standing | 3.04 | _ | 3.04 | Simple## |
| 3 | SIDBI | Term LoanOut-standing | 0.90 | _ | 0.90 | Simple## |
| 4 | SIDBI | Term LoanOut-standing | 0.61 | _ | 0.61 | Simple## |
| 5 | SIDBI | Term LoanSanctioned | 3.40 | _ | 3.40 | Simple## |
| 6 | SIDBI | Term LoanSanctioned | 3.00 | _ | 3.00 | Simple## |
| 7 | Union Bank of India | Cash CreditSanctioned | 50.00 | _ | 50.00 | Simple## |
| 8 | Union Bank of India | GECLOut-standing | 0.87 | _ | 0.87 | Simple## |
| Total | 63.41 | 0.00 | 63.41 | |||
| TOTAL (Rupees Sixty Three Crores and Forty One lakhs 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.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
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