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Centum Electronics Ltd — Audit Report / Information 2025
Oct 9, 2025
61011_rns_2025-10-09_1e82c5d0-ccd2-499d-af18-1c2851452843.pdf
Audit Report / Information
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Ref: CEL/NSEBSE/CR/09102025 9[th] October, 2025
To,
Listing Department, Department of Corporate Services – Listing, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001
Re: Scrip Symbol: CENTUM/ Scrip Code: 517544
Dear Sir/ Madam,
Sub: Intimation of Credit Rating under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
This is to inform you that CRISIL Ratings Limited has reaffirmed the credit ratings assigned to the Company as per the details given below:
| Total Bank Loan Facilities Rated | INR 399.7 Crores |
|---|---|
| Long Term Rating | CRISIL BBB/Stable(Reaffirmed) |
| Short Term Rating | CRISIL A3+(Reaffirmed) |
This disclosure is pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Press Release in this regard is enclosed herewith.
Yours faithfully,
For Centum Electronics Limited
INDU H S
Digitally signed by INDU H S Date: 2025.10.09 19:00:46 +05'30'
Indu H S Company Secretary & Compliance Officer Encl: as above
Centum Electronics Limited
44, KHB Industrial Area, Yelahanka New Town, Bangalore - 560 106, Karnataka, India Tel +91-(0)80-4143-6000 Fax +91-(0)80-4143-6005 Website www.centumelectronics.com E-mail [email protected] CIN - L85110KA1993PLC013869
09/10/2025, 14:23
Rating Rationale
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Rating Rationale
October 08, 2025 | Mumbai
Centum Electronics Limited
Ratings reaffirmed at 'Crisil BBB / Stable / Crisil A3+ '
Rating Action
| RatingAction | |
|---|---|
| Total Bank Loan Facilities Rated | Rs.399.7 Crore |
| Long Term Rating | Crisil BBB/Stable(Reaffirmed) |
| Short Term Rating | Crisil A3+(Reaffirmed) |
Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
Detailed Rationale
Crisil Ratings has reaffirmed its ratings on the bank facilities of Centum Electronics Limited (CEL; part of the centum group) at ‘Crisil BBB/Stable/Crisil A3+’.
The ratings continue to reflect the extensive experience of the promoters and its professional management, established track record in Strategic Electronics Business Unit (SEBU) and Electronic Manufacturing Solutions (EMS) segment and comfortable financial risk profile marked by moderate capital structure and debt protection metrics. These rating strengths are partially offset by working capital-intensive operations, performance of subsidiaries and susceptibility to risks related to technology changes and changes in sourcing policies of customers
Analytical Approach
Crisil Ratings continues with the analytical approach of consolidating CEL with its subsidiaries on account of high degree of operational fungibilities along with common management
- Key Rating Drivers Strengths
Established market position, aided by the extensive experience of the promoter: The promoters and the professional management team have diverse industry experience of about 20+ years. CEL caters to Defence, Space, Aerospace, Transportation, Automotive, Industrial & Energy and Healthcare. The company has had a long-established relationship with most of its customers like Defence Research and Development Organisation (DRDO), Indian Space Research Organization (ISRO) spanning more than 10-15 years with repeat orders and a strong trust factor developed over many years of successful business relations. Due to the high technical complexity and know-how, the customers have typically stayed with their preferred and established suppliers over the decades. Products being used in critical areas, such as space and defence, bear testimony to the technical capability of the group. CEL is into 2 broad business segments namely Electronic Manufacturing Solutions (EMS), and Strategic Electronics Business Unit (SEBU) ensuring diversity in revenue profile.
Strong understanding of market dynamics would continue to support business risk profile. Over the decades, CEL has developed strong engineering and design capabilities which has helped it in meeting the changing demands from its customers. CEL has a healthy order book at hand of Rs. 1,769 Cr as on June 30, 2025, compared to that of Rs.1674 Cr as on June 30, 2024, spanning across its business segments, aided by its established track record of timely and satisfactory completion of projects. Further, established relationship with its key customer, continued innovation, and improving prospects of clean energy will support sustaining healthy growth in the medium.
Comfortable financial risk profile: Debt protection metrics are comfortable marked by interest coverage and NCATD (net cash accruals to total debt) of 3.07 times and 20% respectively in FY25. Also, in the backdrop of capex done towards improving profitability, debt protection metrics are expected to remain comfortable over the medium term. Net worth and gearing continue to remain moderate at around Rs.321.84 crore and 0.44 times respectively as on March 31, 2025. Total outside liabilities to tangible net worth (TOL/TNW) stood at 2.56 times as on March 31, 2025. However, with the expectation of healthy accretion to reserves and no major debt funded capex plans over the medium term, the capital structure is expected to improve over the medium term and would also remain a key monitorable.
Key Rating Drivers - Weaknesses
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/CentumElectronicsLimited_October 08_ 2025_RR_368424.html
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Rating Rationale
Susceptibility to risks related to technology changes and sourcing policies of key customers: Any change in technology will require realignment of products in line with the end-user technology. Delays in such adjustments could weaken the group's competitive position. Also, significant portionof revenue is from various public sector undertakings and defence-related organizations such as Defence Research and Development Organisation (DRDO), Indian Space Research Organisation (ISRO), and the Ordinance factories of Government of India.
Losses in subsidiary entities: Due to the nature of built to specification of these projects, CEL had to modify the projects adhoc due to client’s requests and delay approval of modified projects lead to idle non-productive resources and materials in the company’s books. CEL had many such contracts which lead to losses in the subsidiaries for the past 4 fiscal ending fiscal 2025.
Working capital-intensive operations: Working capital intensity remains high: gross current assets were sizeable at 290 days as on March 31, 2025, owing to inventory and debtors of 139 days and 99 days, respectively on the same date. The same is due to high inventory requirement of the variety of components used and elongated collection cycle accounting to high receivables. However, risk related to the same is mitigated as the tenders generally cater to funded projects / project with allocated budget. Any significant stretch in working capital cycle impacting the liquidity would remain a key rating monitorable
Liquidity Adequate
Bank limit utilisation is moderate at around 72 percent for the past twelve months ended June 2025. Cash accrual are expected to be over Rs 60-80 crore which are sufficient against term debt obligation of Rs 6-16 crore over the medium term. Current ratio are moderate at 1.20 times on March 31, 2025
Outlook Stable
Crisil Ratings believes that CEL shall continue to benefit from its established market position over the medium term.
Rating sensitivity factors
Upward factors:
- Sustained revenue growth rate while maintaining operating margin of more than 9% resulting in larger accruals against repayments.
Sustenance of working capital management along with TOLANW of less than 2.5 times
Downward factors:
Sustenance of TOLTNW to more than 2.75 times due to higher working capital debt or debt funded capital expenditure. Stretch in liquidity due to stretch in working capital or material moderation in accruals
About the Company
Set up by Mr Apparao V Mallavarapu (Chairman and Managing Director - CMD), a first-generation entrepreneur, in 1993, CEL manufactures modules and sub-systems used in space, defence, and industrial electronic sectors. CEL manufactures products for the rail transportation market, focusing on improving energy efficiency, security, and real-time information access. CMD is ably supported by his professional team consist of Joint Managing Director Mr Nikhil Mallavarapu, , four independent directors and Group CFO Mr Sundararajan Parthasarathy.
Key Financial Indicators
As on / for theperiod ended March 31(Consolidated) |
2025 | 2024 | |
|---|---|---|---|
| Operating income | Rs crore | 1,155.42 | 1,090.82 |
| Reportedprofit after tax | Rs crore | -11.76 | -3.57 |
| PAT margins | % | -1.02 | -0.33 |
| Adjusted Debt/Adjusted Net worth | Times | 0.44 | 1.51 |
| Interest coverage | Times | 3.07 | 2.71 |
Any other information: Not applicable
Note on complexity levels of the rated instrument:
Crisil Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.
Crisil Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.
For more details on the Crisil Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.
Annexure - Details of Instrument(s)
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/CentumElectronicsLimited_October 08_ 2025_RR_368424.html
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Rating Rationale
| ISIN | Name Of Instrument |
Date Of Allotment |
Coupon Rate (%) |
Maturity Date |
Issue Size (Rs. Crore) |
Complexity Levels |
Rating Outstanding with Outlook |
|---|---|---|---|---|---|---|---|
| NA | Cash Credit | NA | NA | NA | 12.00 | NA | Crisil BBB/Stable |
| NA | Export Packing Credit |
NA | NA | NA | 84.00 | NA | Crisil A3+ |
| NA | Fund-Based Facilities |
NA | NA | NA | 83.00 | NA | Crisil BBB/Stable |
| NA | Non-Fund Based Limit |
NA | NA | NA | 196.70 | NA | Crisil A3+ |
| NA | Proposed Fund- Based Bank Limits |
NA | NA | NA | 1.50 | NA | Crisil BBB/Stable |
| NA | Term Loan | NA | NA | 31-Mar- 28 |
22.50 | NA | Crisil BBB/Stable |
Annexure – List of entities consolidated
| Annexure – List of entities consolidated | ||
|---|---|---|
| Names of Entities Consolidated |
Extent of Consolidation | Rationale for Consolidation |
| Centum Electronics Limited | 100% | Parent company |
| Centum T&S Private Limited,India | 100% | Subsidiary |
| Centum Electronics UK Limited | 100% | Subsidiary |
| Centum T&S GroupSA,France | 90.08% | Subsidiary |
Annexure - Rating History for last 3 Years
| Current | Current | Current | 2025 (History) | 2025 (History) | 2024 | 2024 | 2023 | 2023 | 2022 | 2022 | Start of 2022 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Instrument | Type | Outstanding Amount |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating | Rating |
| Fund Based Facilities |
ST/LT | 203.0 | Crisil BBB/Stable / Crisil A3+ |
-- | 29-10-24 | Crisil BBB/Stable / Crisil A3+ |
01-08-23 | Crisil BBB/Stable / Crisil A3+ |
30-09-22 | Crisil BBB-/Stable |
Crisil BBB-/Stable |
|
| -- | -- | -- | 21-04-23 | Crisil A3 / Crisil BBB-/Stable |
28-01-22 | Crisil BBB-/Stable |
Crisil A3 / Crisil BBB-/Stable |
|||||
| Non-Fund Based Facilities |
ST | 196.7 | Crisil A3+ | -- | 29-10-24 | Crisil A3+ | 01-08-23 | Crisil A3+ | 30-09-22 | Crisil A3 | Crisil A3 | |
| -- | -- | -- | 21-04-23 | Crisil A3 | 28-01-22 | Crisil A3 | -- |
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
| Facility | Amount (Rs.Crore) | Name of Lender | Rating |
|---|---|---|---|
| Cash Credit | 12 | State Bank of India | Crisil BBB/Stable |
| Export Packing Credit | 84 | State Bank of India | Crisil A3+ |
| Fund-Based Facilities | 43 | Kotak Mahindra Bank Limited |
Crisil BBB/Stable |
| Fund-Based Facilities | 40 | HDFC Bank Limited | Crisil BBB/Stable |
| Non-Fund Based Limit | 19.7 | Kotak Mahindra Bank Limited |
Crisil A3+ |
| Non-Fund Based Limit | 177 | State Bank of India | Crisil A3+ |
| Proposed Fund-Based Bank Limits |
1.5 | Not Applicable | Crisil BBB/Stable |
| Term Loan | 22.5 | State Bank of India | Crisil BBB/Stable |
Criteria Details
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/CentumElectronicsLimited_October 08_ 2025_RR_368424.html
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Rating Rationale
Links to related criteria
Basics of Ratings (including default recognition, assessing information adequacy)
Criteria for manufacturing, trading and corporate services sector (including approach for financial ratios)
Criteria for consolidation
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|---|---|---|
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Rating Rationale
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/CentumElectronicsLimited_October 08_ 2025_RR_368424.html
5/7
09/10/2025, 14:23
Rating Rationale
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Rating Rationale
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