On this pageCommand 13-Wk Forecast Cash Conversion Working Capital Receivables Liquidity & Covenant Toolkit

Cash 360

The treasury cockpit — 13-week cash, EBITDA-to-FCF conversion, working-capital unlock, receivables, liquidity and covenant headroom.

Rico Auto Industries Limited · FY26 (Mar'26, actuals)

Leading Indian aluminium high-pressure die-casting auto-components maker

7,500 employees · 8+ plants & units · 12 export markets

▲ Executive read· the answer, then the moves

Liquidity is sound at ₹240 Cr (≈ 5 weeks cover), but ₹47.5 Cr of working capital is trapped in receivables — and far more in inventory. Pull DSO from 55d to 48d to help self-fund the ₹450–500 Cr/yr growth capex rather than lean on the ₹94 Cr of covenant headroom.

5 of 5 headline metrics improving vs prior · still off target: Free Cash Flow ₹96 Cr vs ₹160 Cr, Cash Conversion Cycle 38d vs 28d, DSO (Days Sales Outstanding) 55d vs 50d

Do now — ranked by urgency

1
Aluminium (LME) cost on marginAct now
Why it matters
Extend metal pass-through clauses; hedge; push scrap/yield & energy savings.
What's driving it
Gross Margin
Signal: Alert
FYI
Firm LME aluminium + energy pressuring near-term gross margin and EBITDA.
Act →▤ open duplicate accounts
2
Leverage near covenantAct now
Why it matters
Run-rate FCF sweep + working-capital discipline; protect headroom — paydown is priority.
What's driving it
Leverage
Signal: Alert
FYI
Net Debt/EBITDA 3.08x vs 3.5x covenant; greenfield (Hosur) capex pushed net debt to ₹686 Cr.
Act →
3
Covenant headroom 0.2× (lev 3.3× vs 3.5×)Act now
Why it matters
Sets capex headroom and refinancing risk on a levered (~3.1×) balance sheet.
What's driving it
Q1 (act)
Signal: Threshold
FYI
Net-debt/EBITDA 3.3× against a 3.5× lender ceiling.
Owner: CFO · Treasury
Act →
4
Unlock ₹47.5 Cr by pulling DSO to the 48d targetWatch
Why it matters
Every day of DSO above 48d ties up working capital; closing the gap releases ≈ ₹47.5 Cr of one-time cash.
What's driving it
DSO 55d vs 48d target
Overdue >60d = ₹45.0 Cr of ₹373 Cr AR
FYI
Normalizing laggard divisions to 50d DSO releases ≈ ₹45.7 Cr
Owner: Treasury
Work the overdue book →▤ open the overdue receivables

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↗ Where this connects — act / drill across

▤Evidence· open the overdue-invoice list 🧩Customer Master· term conflicts driving AR 👥Customer 360· DSO by account 🚪Value Creation· debt & deleverage path

Liquidity

₹240 Cr

≈ 5 weeks cover

Free cash flow

₹96 Cr

43% EBITDA conversion

Cash conversion cycle

38d

DSO 55 + DIO 45 − DPO 62

Working-capital unlock

₹47.5 Cr

DSO 55→48d target

Exhibit 1

13-week direct cash flow forecast

Net weekly cash (bars) and ending cash (line) vs. ₹60 Cr minimum. Forecast trough: ₹92 Cr.

Above minimum

₹110 Cr

Opening cash

₹638 Cr

13-wk collections

₹634 Cr

13-wk disbursements

₹114 Cr

Closing cash

Exhibit 2

EBITDA → Free cash flow

₹223 Cr EBITDA converts to ₹96 Cr FCF (43%).

Exhibit 3

Cash collected

Monthly, ₹ Cr.

Cash conversion cycle

Working-capital days

DSO — receivables55d

DIO — inventory45d

DPO — payables (offset)(62d)

Cash conversion cycle38d

Where cash is trapped

Working-capital cash unlock

₹45.7 Cr

Normalizing laggard divisions to 50-day DSO releases ~₹45.7 Cr one-time.

Aluminium HPDC (core)56d

₹27.9 Cr

Rico Jinfei Wheels (94.8%)55d

₹6.2 Cr

FCC Rico (JV) + EV / New Mobility62d

₹3.0 Cr

AAN Engineering (Aero-Defence, 100%)60d

₹2.6 Cr

Ferrous Castings54d

₹2.5 Cr

Rico Friction Technologies (70%)58d

₹2.0 Cr

Rico Fluidtronics (100%)53d

₹1.4 Cr

Collections

AR aging

Total AR ₹373 Cr

Current days₹200 Cr

1-30 days₹80 Cr

31-60 days₹48 Cr

61-90 days₹28 Cr

90+ days₹17 Cr

Overdue (>60d) = ₹45.0 Cr.

Exhibit 4

Collections priority

Highest DSO first.

Account	Revenue	DSO	Credit risk
Export OEMs (Europe / NA)	₹220 Cr	60d	Medium
BMW Group	₹180 Cr	58d	Low
Tata Motors / Mahindra	₹95 Cr	58d	Medium
Toyota / TKM	₹120 Cr	57d	Low
Hero MotoCorp	₹645 Cr	56d	Medium
Renault-Nissan	₹150 Cr	55d	Medium
Honda (HMSI / Cars)	₹250 Cr	54d	Low

Exhibit 5

Supplier DPO

Working-capital lever.

Supplier	Spend	DPO	OTIF	Risk
Hindalco / Vedanta (primary aluminium)	₹820 Cr	58d	93%	Medium
NALCO / secondary alloy & ingot	₹360 Cr	60d	91%	Medium
Tata Steel / JSW + scrap (pig iron & steel)	₹280 Cr	55d	92%	Medium
Power utilities & gas (energy)	₹240 Cr	30d	96%	High
Tooling & dies (HPDC / GDC)	₹180 Cr	72d	88%	Low
Machining consumables & inserts	₹120 Cr	50d	90%	Medium