Quality of earnings, 13-week cash, covenant runway, working-capital unlock and the value levers behind margin expansion and deleveraging.
Net debt of ₹687 Cr sits at 3.08× EBITDA against the 3.5x covenant — deleveraging is the priority, and freeing trapped cash funds it. Normalizing DSO to 50d releases ≈ ₹34 Cr and clears ₹45 Cr of overdue receivables, while liquidity of ₹240 Cr (≈ 5 weeks of cover) carries the aluminium cycle.
8 of 8 headline metrics improving vs prior · still off target: Total Revenue ₹2,477 Cr vs ₹2,700 Cr, EBITDA ₹223 Cr vs ₹280 Cr, EBITDA Margin 9.0% vs 12.0%
Extend metal pass-through clauses; hedge; push scrap/yield & energy savings.
Firm LME aluminium + energy pressuring near-term gross margin and EBITDA.
Run-rate FCF sweep + working-capital discipline; protect headroom — paydown is priority.
Net Debt/EBITDA 3.08x vs 3.5x covenant; greenfield (Hosur) capex pushed net debt to ₹686 Cr.
Sets capex headroom and refinancing risk on a levered (~3.1×) balance sheet.
Closing the DSO gap releases ≈ ₹34 Cr of one-time cash; ₹45 Cr is already >60 days overdue and at collection risk.
₹30 Cr of add-backs (13% of adj.) — the audit-grade walk.
Organic volume vs. mix (machining / value-add) vs. price/content gain vs. aluminium/energy cost.
Net weekly cash (bars) and ending cash (line) vs. ₹60 Cr minimum. Forecast trough: ₹92 Cr.
Net Debt/EBITDA deleveraging path against the 3.5x lender covenant ceiling.
Normalizing laggard divisions to a 50-day DSO releases ~₹46 Cr of one-time cash.
Concentrated in the newer units (Rico Fluidtronics, AAN Aero-Defence, FCC Rico / EV) and the export book where export-LC and milestone billing lag the mature plants — the fastest cash win this fiscal year.
Machined & value-added revenue growth and where EBITDA is generated.
Total AR ₹373 Cr
Overdue (>60d) = ₹45 Cr at collection risk.
Accounts ranked by DSO and credit/churn risk.
| Account | Revenue | DSO | Repeat | Credit/Churn |
|---|---|---|---|---|
| Export OEMs (Europe / NA) | ₹220 Cr | 60d | 109% | Medium |
| BMW Group | ₹180 Cr | 58d | 113% | Low |
| Tata Motors / Mahindra | ₹95 Cr | 58d | 106% | Medium |
| Toyota / TKM | ₹120 Cr | 57d | 115% | Low |
| Hero MotoCorp | ₹645 Cr | 56d | 106% | Medium |
| Renault-Nissan | ₹150 Cr | 55d | 107% | Medium |
| Honda (HMSI / Cars) | ₹250 Cr | 54d | 108% | Low |
| Bajaj / TVS | ₹110 Cr | 53d | 104% | Medium |
| Maruti Suzuki | ₹330 Cr | 52d | 112% | Low |
| Royal Enfield | ₹210 Cr | 50d | 110% | Low |
EBITDA growth, DSO normalization and savings realization (as-scaled → current).
| Unit / subsidiary | Scaled | Revenue | EBITDA | DSO | Transform | Savings | Status |
|---|---|---|---|---|---|---|---|
| Aluminium HPDC (core) | 1989 | ₹1700 Cr | 7% → ₹162 Cr | 70→56d | 100% | 90% | Integrated |
| Ferrous Castings | 1992 | ₹230 Cr | 6% → ₹17 Cr | 66→54d | 100% | 84% | Integrated |
| Rico Jinfei Wheels (94.8%) | 2008 | ₹455 Cr | 8% → ₹43 Cr | 64→55d | 88% | 78% | In progress |
| AAN Engineering (Aero-Defence, 100%) | 2017 | ₹95 Cr | 12% → ₹14 Cr | 72→60d | 65% | 55% | In progress |
| Rico Fluidtronics (100%) | 2018 | ₹165 Cr | 9% → ₹20 Cr | 62→53d | 82% | 74% | In progress |
| Rico Friction Technologies (70%) | 2020 | ₹90 Cr | 8% → ₹9 Cr | 68→58d | 70% | 60% | In progress |
| FCC Rico (JV) + EV / New Mobility | 2021 | ₹92 Cr | 7% → ₹11 Cr | 69→62d | 45% | 40% | Early |
Input & tooling spend, DPO (working-capital lever), delivery and risk.
| Supplier | Category | Spend | DPO | OTIF | Score | Risk |
|---|---|---|---|---|---|---|
| Hindalco / Vedanta (primary aluminium) | Aluminium (primary) | ₹820 Cr | 58d | 93% | 86 | Medium |
| NALCO / secondary alloy & ingot | Aluminium alloy / ingot | ₹360 Cr | 60d | 91% | 84 | Medium |
| Tata Steel / JSW + scrap (pig iron & steel) | Pig iron / steel / scrap | ₹280 Cr | 55d | 92% | 85 | Medium |
| Power utilities & gas (energy) | Power & energy | ₹240 Cr | 30d | 96% | 82 | High |
| Tooling & dies (HPDC / GDC) | Tooling & dies | ₹180 Cr | 72d | 88% | 88 | Low |
| Machining consumables & inserts | Machining consumables | ₹120 Cr | 50d | 90% | 83 | Medium |