Anjalee Granites Private Limited

Brickwork Ratings assigns the long-term and short-term ratings for the Bank Loan Facilities of Rs. 42.78 Crs. of Anjalee Granites Private Limited

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	7.78	Long Term	BWR BB /Stable Assignment
	(6.00)
	35.00	Short Term	BWR A4 Assignment
Grand Total	42.78	(Rupees Forty Two Crores and Seventy Eight lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings has relied on the audited financials of Anjalee Granites Pvt Ltd for FY24 and FY25 and projected financials for FY26 and FY27, information furnished by the client and its bankers, to arrive at the present ratings.

Brickwork Ratings has assigned the ratings to "BWR BB/Stable/A4" for the bank loan facilities of Rs.42.78Crs.The assignment of the rating draws strength from the business experience of the promoters in granite industry, longstanding relations with The customers, and acceptable financial profile. However, the rating is constrained by the scale of operations, high conversion cycle, intense competition, stretched liquidity and volatility associated with the foreign currency in this business.

BWR believes that the business risk profile of Anjalee Granites Pvt Ltd 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, with improvement in debt protection metrics. The rating outlook may be revised to 'Negative' if the revenues go down, profit margins show lower than expected figures or if there is a delay in debt servicing.

KEY RATING DRIVERS

Credit Strengths:

• Locational Advantage :

  The company is located in Prakasam district, India's central hub of granite and this proximity offers easy access to customers, traders, and contractors, making it an ideal marketplace for building materials. The factory also benefits from excellent road and rail connections. The company currently sources its grounded granites from local vendors instead of operating them.

• Extensive experience of the promoters :

  Anjalee Granites is helmed by Mr.Hari Prasad and Mr. Naga Rao. The promoters are highly qualified and bring extensive experience from related sectors, including mining and mineral processing for last four decades. This long-standing industry experience has equipped the partners with a profound market understanding and fostered strong relationships with both suppliers and customers.

• Moderate Profitability :

  Anjalee Granites profitability marked by EBITDA margin increased from 11.68% in FY24 to 11.80% in FY25 mainly due to increase in revenue. Moderate profitability is supported by premium nature of its product and a steady demand outlook. Following the rise in EBITDA margin, Profit after tax (PAT) margin of the firm also increases to 2.52% in FY25 as against 1.71% in FY24. Net cash accrual is at Rs.4.09crore in FY25 (FY24: Rs.3.87crore). The company's efficiency also improved marked by Return on Capital Employed (ROCE) which stood moderate at 6.67% in FY25, improving from 5.53% in FY24, and in FY26 the ROCE is expected to be at a moderate level.

Credit Risks:

• Working Capital Intensive nature :

  The company's operation is capital-intensive, marked by the conversion cycle of 465 days in FY25. The conversion cycle is stretched because of longer inventory holding peiod of 454days in FY25 and extended receivable days of 131 days .On the other hand payble days stands at 120days in FY25.

   

• Susceptibility of margins to volatility in Granite prices and foreign exchange rate fluctuations with highly competitive industry: :

  The demand and pricing of granite remain volatile because they are deeply linked to the cyclical nature of international real estate and construction markets. This external risk is compounded by the financial uncertainty created by foreign exchange rate fluctuations, a constant threat for an exporter like Anjalee Granites. Furthermore, the industry is intensely fragmented and competitive. To maintain its market position, the company must continuously invest in new technology and design trends to meet the rising customer demand for unique and exotic granite styles.

• Moderate debt-coverage indicators :

  The company’s capital structure continues to remain moderate as marked by overall gearing of 1.41x as on March 31,2025 as against 1.35x as on March 31,2024. The overall gearing was on the back of reduction in the term debt with the schedule repayment of term loan as well as augmentation of the capital base with accretion of the profit. The Debt coverage indicators remained moderate as marked by DSCR and interest coverage of 0.79x and 2.08x respectively in FY25.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided). There are no subsidiaries of the company and BWR has taken a standalone approach for bank loan rating of the company.

RATING SENSITIVITIES

Going forward, the ability of the company to significantly improve its scale of operations with sustainable profitability, improvement in debt protection metrics and manage its working capital efficiently shall be the key rating sensitivities.

Upward:

• Significant improvement in scale of operations, marked by total revenue above Rs. 85Crs., and PAT margin above 4% on a sustained basis.

• Prudent working capital management and improvement in the capital structure on a sustained basis.

• Improvement in the credit metrics marked by debt/equity below unity and liquidity is comfortable on a sustained basis.

Downward:

• Weaker than expected growth in revenue and profitability margins leading to deterioration in business and financial risk profile

• Decline in gearing ratio marked by >1x leading to weak capital structure.

• Specific financial metrics which may result in a rating downgrade include a deterioration in PAT margin, current ratio below unity, DSCR declining below unity on a sustained basis.

LIQUIDITY INDICATORS - Stretched

The entity’s liquidity position is considered stretched considering the current ratio, EBITDA and surplus cash accruals to cover the annual debt obligations. The EBITDA at Rs. 8.28Crs for FY25 was sufficient to cover interest and finance charges of Rs. 3.98Crs for FY25. The average working capital utilization has been less than 97% for the last 12 months and the current ratio stands at 1.63x in FY25. The entity has net cash accrual of Rs.4.09Crs in FY25 against the CPLTD of approximately 6Crs in FY25. The cash and bank balance stands at Rs. 0.31Crs. Improved trend is observed for FY26 and FY27. In FY26, net cash accruals is projected at Rs. 2.86 Crs. against the CPLTD of 3.96Crs. 

ABOUT THE ENTITY

The Anjalee Granites significantly expanded its reach with the introduction of Anjalee Granite retail shops, making its offerings accessible to a wider clientele. The founder Mr. Hari Prasad has ensured that this same level of sophistication is delivered to every customer through dedicated production facilities, all of which maintain exceptionally strict quality and craftsmanship standards.

To enhance oversight of product quality and broaden the available selection, he established Anjalee Granites Private Limited. A key development was the inauguration of the gangsaw unit in 2010, which has since grown into a massive 175,000 square feet production area. Its strategic positioning within the Ongole Building Products SEZ, offering proximity to the Krishnapatnam and Chennai ports, greatly simplifies logistics for dispatch and shipping. Currently Mr. Naga Maheswara Rao, one of the promoter of the company is looking after the business.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	69.05	64.41	70.89
EBITDA	Rs.Crs.	8.65	7.52	8.28
PAT	Rs.Crs.	0.85	1.10	1.34
Tangible Net Worth	Rs.Crs.	33.32	34.32	35.66
Total Debt / Tangible Net Worth	Times	1.23	1.35	1.41
Current Ratio	Times	1.40	1.45	1.49

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
ICRA	ICRA has reafirmed the rating at "ICRA BB/Stable/A4" under Non-Coopration for the bank loan facility of Rs. 52Crs. as the issuer did not cooperate	25Apr2025
CRISIL	Crisil has reafirmed the rating at "CRISIL B/Stable" under Non-Coopration for the bank loan facility of Rs. 28Crs. as the issuer did not cooperate	20Feb2025

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	7.78	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(6.00)	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	35.00	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		42.78	(Rupees Forty Two Crores and Seventy Eight lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Trading Entities
• Short Term Debt
• Manufacturing Company

Analytical Contacts
Srija Das Ratings Analyst srija.das@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@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	Karur Vysya Bank	Term Loan - Out-standing	1.48	_	1.48	Simple##
2	Karur Vysya Bank	Term Loan - Out-standing	4.85	_	4.85	Simple##
3	Karur Vysya Bank	Working Capital Term Loan - Out-standing	1.45	_	1.45	Simple##
4	Karur Vysya Bank	PC/PCFC - Sanctioned	_	20.00	20.00	Simple##
	Sub-Limit (OCC) - Sanctioned	(6.00)
5	Karur Vysya Bank	FBD/FBP - Sanctioned	_	15.00	15.00	Simple##
Total			7.78	35.00	42.78
TOTAL (Rupees Forty Two Crores and Seventy Eight 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.