Key Metrics of Arfin India Limited
About Arfin India Limited
Sectors
Company details
- Registered office
- Plot No.117, Ravi Industrial Estate, Behind Prestige Hotel, Billeshwarpura, Chhatral, Kalol, Gandhinagar, In-gj, 382729
- Listed
- NSE: ARFIN · ₹95.32
Operational Areas of Arfin India Limited
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
NoteLatest action: rating withdrawn (CARE, 21 Oct 2024)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 21 Oct 2024 | CARE | Withdrawn | BBB- | A3 | Stable | — | View |
| 04 Aug 2023 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹119 Cr | View |
| 12 Aug 2022 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹243 Cr | View |
| 04 Jul 2022 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹101 Cr | View |
| 29 Jun 2021 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹211 Cr | View |
| 02 Sep 2020 | CARE | Revised | BBB- | A3 | Negative | ₹212 Cr | View |
| 02 Jul 2019 | CARE | Reaffirmed | BBB | A3 | Stable | ₹125 Cr | View |
| 05 Jun 2019 | CARE | Revised (from BBB) | BBB+ | A3 | Negative | ₹184 Cr | View |
| 22 Feb 2019 | CARE | Reaffirmed | BBB+ | A2 | Negative | ₹91.8 Cr | View |
Credit strengths (CARE, Oct 2024)
+ Experienced promoters in the metal industry
AIL’s promoter, Mahendra R Shah (Chairman & Executive Director), has more than two decades of experience in the manufacturing of ferrous and nonferrous metals. He currently looks after the entire operations of the company and is assisted by his son, Jatin M Shah (Managing Director), along with a qualified and experienced second -tier management personnel. Moderately-diversified product portfolio to cater to the requirements of multiple sectors
+ Moderately-diversified product portfolio to cater to the requirements of multiple sectors
AIL has a presence in multiple product segments of the aluminium industry and has, over the years, gradually diversified its product portfolio. The top three products of the company, ie, aluminium alloy ingots, aluminium wire rod, and aluminium deox contributed 24%, 23%, and 21%, respectively, to AIL’s gross sales in FY23 (25%, 18%, and 15% in FY22). With a moderately diversified product portfolio, AIL caters to the demand of some of the leading players in the steel, automobile,
Credit challenges
− Moderate profitability, susceptible to raw material price volatility and foreign exchange rate fluctuations
With limited value addition, AIL’s operating profit (PBILDT) margin continued to remain moderate at 5.87% in FY24 (P.Y:5.23%). The profit-after-tax (PAT) margin also stood limited at 1.53% in FY24 (P.Y: 1.89%). Consequently, the company registered moderate gross cash accruals (GCA) of ₹11.47 crore during FY24. In Q1FY25, company has registered PBILDT margin and PAT margin of 7.01% & 2.26% respectively. The main raw material for AIL is aluminium scrap, which it imports to some extent (from Japan
− Moderate capital structure and debt coverage indicators
AIL’s capital structure remained moderate, as indicated by an overall gearing of 1.39x as on March 31, 2024 (1.36x as on March 31, 2023). AIL’s debt coverage indicators also remained moderate in FY24 with a PBILDT interest coverage of 1.71x (PY: 1.99x), TD/GCA of 11.68 years (PY: 8.22 years) and TD/PBILDT of 4.26x (PY: 4.18x). In Q1FY25, AIL has received equity infusion of Rs.52.50 crore from JFE Shoji India Pvt. Ltd. (a group company of JFE Holdings-Japan) via preferential allotment on private
− Fragmented industry characterised by intense competition, along with high end-user industry concentration
The spectrum of the aluminium industry in which the company operates is highly fragmented and competitive, marked by the presence of numerous small and unorganised players in India. Hence, the players in the industry have limited pricing power and are exposed to competitive pressure on their profitability. This apart, its products, largely being of intermediary usage, are subject to the risks associated with the industry’s cyclicality and price volatility. Furthermore, despite a gradual diversif
Could lead to an upgrade
• Increase in the scale of operations through healthy volume-driven growth along with improvement in its profit before interest, lease rentals, depreciation and taxation (PBILDT) margin and return on capital employed (RoCE) to more than 7% and 15%, respectively, on a sustained basis. • Improvement in the total debt (TD)/PBILDT to around 3x on a sustained basis. • Improvement in the overall gearing to less than unity on a sustained basis.
Could lead to a downgrade
• Any significant deterioration in the profitability and debt coverage indicators on a sustained basis. • Deterioration in the TD/PBILDT to more than 6x on a sustained basis. • Elongation of the gross operating cycle to more than 180 days on a sustained basis, adversely impacting the
Agency-reported financials (CARE, 21 Oct 2024)
| Metric | March 31, 2023 | March 31, 2024 | Q1FY25 |
|---|---|---|---|
| Total operating income | ₹546 Cr | ₹536 Cr | ₹133 Cr |
| PBILDT | ₹28.57 Cr | ₹31.48 Cr | ₹9.34 Cr |
| PAT | ₹10.32 Cr | ₹8.22 Cr | ₹3.01 Cr |
| Overall gearing (times) | 1.28× | 1.25× | — |
| Interest coverage (times) | 1.99× | 1.71× | 2.18× |
| Revenue growth (YoY) | — | −1.8% | — |
| EBITDA margin | 5.2% | 5.9% | 7.0% |
| Implied interest cost (EBITDA ÷ coverage) | ₹14.36 Cr | ₹18.41 Cr | ₹4.28 Cr |
| PAT margin | 1.9% | 1.5% | 2.3% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term bank facilities | Working capital & bank lines | — | ₹26.7 Cr | — | BBB- (Stable) | Reaffirmed | CARE |
| Long-term/Short-term bank facilities | Working capital & bank lines | — | ₹92.7 Cr | — | BBB- / A3 (Stable) | Reaffirmed | CARE |
CARE ratings on record (checked 22 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| Bank Guarantee | — | Withdrawn |
| LT/ST | — | Withdrawn |
| Term Loan | — | Withdrawn |
| Working capital Term Loan | — | Withdrawn |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Withdrawal | CARE · 21 Oct 2024 · Withdrawn at company request with lender NOCs |
| Next action stable or better (model) | 46% |
| Information on file | 78% · missing: Auditor details, Recent rating review (last 15 months) |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 46% chance the next rating action is stable or better
- Current rating BBB- (investment grade)
- Interest coverage 1.99×
- CARE withdrew its ratings on 21 Oct 2024 — usually after the rated bank loans were repaid or moved to another lender
What happened, step by step
- Aug 2023 — Project / plant of ₹10 cr
- Aug 2023 — Term debt tied up (₹3.6 cr)
“The same is expected to aid funding for its ongoing capex to set up the manufacturing facility of a new product ‘Inoculant’ at a total cost of ₹10 crore with an installed capacity of 1 ,000 metric ton (MT).”
Rated limits by facility
Timeline
From the report
Prior to its withdrawal, the ratings continued to derive strength from AIL’s experienced promoters in the manufacturing of non- ferrous metals, the established relationship with reputed clientele as well as the moderately-diversified product portfolio, moderate scale of operations and its presence as an organised player in thefragmented aluminium recycling industry.However, the ratings continue to remain constrained by its moderate profitability with vulnerability to the volatile raw material prices and foreign exchange rates, the moderate capital structure as well as debt coverage indicators,
From the report
Consequently, the company registered moderate gross cash accruals (GCA) of ₹11.47 crore during FY24.
From the report
Consequently, the company registered moderate gross cash accruals (GCA) of ₹14.53 crore during FY23.
From the report
The company has availed a term loan of ₹3.60 crore for undertaking a capex for installing a solar power plant at Banaskantha, Gujarat, with a capacity of 1.2 MW, which has become functional from January 2023.
From the report
The average utilisation of the working capital limits remained high at around 86% for the last 12 months ended June 30, 2023, with a sizeable inventory holding requirement (of around two to three months) along with a deployment of funds for supplier advances; however, the company receives a moderate credit period of around 40 which, along with a controlled collection period, results in a moderate operating cycle. 2 CARE Ratings Ltd.
From the report
Press Release AIL registered a positive cash flow from operations of around ₹29.40 crore during FY23, which resulted in accumulation of free cash balance of ₹7.51 crore as on March 31, 2023.
From the report
The same is expected to aid funding for its ongoing capex to set up the manufacturing facility of a new product ‘Inoculant’ at a total cost of ₹10 crore with an installed capacity of 1 ,000 metric ton (MT).
From the report
Average utilization of working capital limits remained moderate at ~82% for 12 months ended June 2022 supported by positive cash flow from operations of Rs.14.32 crore in FY22 and availment of covid emergency credit line.
From the report
Average utilization of working capital limits remained moderate at ~82% for 12 months ended June 2022 supported by positive cash flow from operations of Rs.14.32 crore in FY22 and availment of covid emergency credit line.
From the report
AIL availed covid emergency credit line of Rs.24.79 crore in FY21, as part of RBI’s covid relief measure, for its working capital requirement.
From the report
Average utilization of working capital limits remained moderate at ~84% for 12 months endedApril 2022 with reduction in sanctioned working capital limits over the past two years; supported by positive cash flow from operations of Rs.14.32 crore in FY22 and availment of covid emergency credit line.
From the report
Average utilization of working capital limits remained moderate at ~84% for 12 months endedApril 2022 with reduction in sanctioned working capital limits over the past two years; supported by positive cash flow from operations of Rs.14.32 crore in FY22 and availment of covid emergency credit line.
From the report
Average utilization of working capital limits remained moderate at ~84% for 12 months endedApril 2022 with reduction in sanctioned working capital limits over the past two years; supported by positive cash flow from operations of Rs.14.32 crore in FY22 and availment of covid emergency credit line.
From the report
AIL availed covid emergency credit line of Rs.24.79 crore in FY21, as part of RBI’s covid relief measure, for its working capital requirement.
From the report
This resulted in a hi gh utilization of the working cap ital limits, averaging at 92% for 12 months ended April 2021; given company’s limited cash accruals and a reduction in its sanctioned working capital limits over last few quarters.
From the report
Thus, rationalization of inventory levels would continue to remain crucial for AIL’s prospects, given its restricted liquidity profile and the scheduled repayments of the covid -emergency line of credit which the company availed to meet its working capital requirements during the year.
From the report
AIL had also availed interest moratorium on its working capital facilities from March to August 2020. 2 CARE Ratings Limited Press Release Fragmented industry characterized by intense competition, along with high end -user industry concentration: The spectrum of the aluminium industry in which the company operates is highly fragmented and competitive marked by presence of numerous small and un organized players in India.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Arfin India Limited
Top competitors by location
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Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Principal business activities and related-party transactions are read from MGT-7 and AOC-4 filings.
Filings
No filings on record yet.