Axiscades Technologies Limited

On a consolidated basis, ACTL had total cash and cash equivalent of ₹45.46 crore as on March 31, 2026.

On consolidated basis, ACTL had cash and bank balances without lien of ₹97.40 crore as on March 31, 2025 and investment in mutual funds, among others, of ₹29.00 crore.

Improvement in capital structure following fund raise through QIP ACTL raised net proceeds of ₹203 crore through QIP issue in the month of January 2024 of which ₹158 crore was earmarked for debt repayment while balance ₹45 crore is for utilisation towards general corporate purpose.

Of net proceeds of ₹203 crore raised through QIP, the company has repaid its high-cost non-convertible debentures (NCD) to the extent of ₹105 crore in March 2024 and another ₹53 crore is expected be repaid by December 31, 2024.

Detailed description of the key rating drivers: Key strengths Improvement in capital structure following fund raise through QIP: ACTL raised net proceeds of ₹203 crore through QIP issue in the month of January 2024 of which ₹158 crore is earmarked for debt repayment while balance ₹45 crore is for utilisation towards general corporate purpose.

Press Release repayment, the company has already pre-repaid NCD to the tune of ₹105 crore while balance amount of ₹53 crore would be prepaid by December 31, 2024.

On consolidated basis, ACTL had cash and cash equivalents of ₹275 crore as on January 31, 2024, though is expected to be lower on March 31, 2024, as certain amount would have been utilised for NCD prepayments.

CARE Ratings Limited (CARE Ratings) takes note ofrefinancing of the high- cost non-convertible debentures (NCDs), which were availed acquisition of Mistral, with a relatively low-cost borrowings and for slightly longer tenor.

On a consolidated basis, ACTL’s cash and bank balances stood at around ₹109.4 crore as on March 31, 2023, as against minimal principal repayment obligations during FY24.

On a standalone basis, ACTL’s cash and bank balances stood at ₹16.8 crore as on March 31, 2023.

CARE Ratings Limited (CARE Ratings) takes note of the completion of Phase II by way of cash consideration of ₹72.13 crore, which has been funded using the ₹45 crore of additional non-convertible debentures (NCDs) raised, and balance using the promoters’ funds and internal accruals, as against the earlier expectation of completion of Phase II using shares allocation.

CARE Ratings Limited (CARE Ratings) takes note of the completion of Phase II by way of cash consideration of ₹72.13 crore, which has been funded using the ₹45 crore of additional non-convertible debentures (NCDs) raised, and balance using the promoters’ funds and internal accruals, as against the earlier expectation of completion of Phase II using shares allocation.

Key weaknesses Refinancing risk associated with NCD To pay out the consideration involved for Phase-II to Phase-IV of acquisition of Mistral, ACTL has raised NCD of ₹145 crore of tenor of one-three years.

Liquidity: Adequate On a consolidated basis, ACTL’s cash and bank balances stood at around ₹80 crore as on December 31, 2022, as against principal repayment obligations of less than ₹10 crore for Q4FY23.

On a standalone basis, ACTL’s and ACAT’s cash and bank balances stood at ₹11.46 crore and ₹5.61 crore, respectively, as on December 31, 2022.

With expected overall gearing of less than 1.0x and cash accruals of more than ₹40 crore, the company has adequate headroom to raise additional debt in case required.

CARE Ratings takes note of the non-convertible debentures (NCD) of ₹100 crore raised by ACTL to fund the Phase-III and Phase-IV of acquisition and will continue to monitor the further acquisition process and its implication on ACTL’s credit profile.

Negative factors – Factors that could lead to negative rating action/downgrade: • Non-completion of Phase-II of the acquisition by September 2023 or delay in refinancing of NCD. • Repayment of unsecured loans availed from the promoters before repayment of NCDs.

Negative factors – Factors that could lead to negative rating action/downgrade: • Non-completion of Phase-II of the acquisition by September 2023 or delay in refinancing of NCD. • Repayment of unsecured loans availed from the promoters before repayment of NCDs.

Liquidity: Stretched On a consolidated basis, ACTL’s cash and bank balances stood at around ₹90 crore as on March 31, 2022 (Prov.) against principal repayment obligations of around ₹22 crore for FY23.

Liquidity: Stretched On a consolidated basis, ACTL’s cash and bank balances stood at around ₹90 crore as on March 31, 2022 (Prov.) against principal repayment obligations of around ₹22 crore for FY23.

Of the cash and bank balance, around ₹40 crore belongs to Mistral which ACTL may not have access to till the completion of the acquisition process and majority of balance amount would have been utilized towards margin money for BG of ₹65 crore.

On a standalone basis, ACTL’s cash and bank balances stood at around ₹15 crore as on June 30, 2022.

On standalone level, ACTL’s free cash and bank balances of Rs.3.67 Cr as of Sept’21 and ACAT’s cash and bank balances stood at Rs.11.39 Cr as of June 30, 2021.

However, on consolidated level, the free cash and bank balances improved to Rs.65.3 Cr as of J une 30, 2020 (Rs.47.1 Cr as of March 31, 2020) on account of realization of receivables.

On standalone level, ACET and ACAT had fr ee cash and bank balances of Rs.25.89 Cr and Rs.20.45 Cr respectively as of June 30, 2020.

ACET had availed the moratorium as a part of RBI’s Covid -19 package from March to August 2020 for deferment of interest and principal payments rel ated to term loan facilities and interest payments related to cash credit facility. 2 CARE Ratings Limited Press Release Analytical approach: ACET has established subsidiaries in various geographies and acts as on-shore centers and the business model entails a high amount of integration of ACET with its subsidiaries and therefore the consolidated approach is taken to analyze the credit profile of ACET.

Liquidity: Adequate Company’s liquidity stands adequate with cash and bank balance of Rs.47.3 crore as on Sept’19 (Rs. 58.3 crore as on Mar’19) as against yearly term loan repayments of Rs. 20 crore.

The company has adequate cash and bank balance of Rs. 31 crore as on Dec’18 though the same has declined from Rs.61.9 crore as on Mar’18.

However the comfort is drawn from satisfactory cash and bank balance of the company and lower repayments of loan in FY19.

Detailed description of the key rating drivers Key Rating Strengths Comfortable capital structure and liquidity The capital structure of Axiscades continues to remain comfortable with overall gearing of 0.30x as on Mar’17 (Mar’16: 0.33x) with high cash and bank balance of Rs. 71.9 crore.

The total acquisition cost is estimated at Rs. 175 crore out of which Rs. 70 crore was paid as cash consideration while remaining Rs. 105 crore will be paid by way of allotment of shares of ACET.