Rating Rationale
May 16, 2022 | Mumbai
Larsen and Toubro Infotech Limited
Ratings Reaffirmed
 
Rating Action
Total Bank Loan Facilities RatedRs.970 Crore
Long Term RatingCRISIL AAA/Stable (Reaffirmed)
Short Term RatingCRISIL A1+ (Reaffirmed)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has reaffirmed its ‘CRISIL AAA/Stable/CRISIL A1+’ ratings on the bank facilities of Larsen and Toubro Infotech Limited (LTI).

 

LTI and Mindtree Ltd (Mindtree), on May 06, 2022, announced the proposal to merge Mindtree into LTI through a scheme of amalgamation as approved by the respective boards of the companies. The shareholders of Mindtree will receive 73 shares of LTI (face value of Rs 1 each) in exchange for 100 shares of Mindtree (face value of Rs 10 each); with all the subsidiaries and associates of Mindtree becoming subsidiaries and associates of LTI. Post the receipt of various regulatory approvals expected in the next 9-12 months, the amalgamated entity will be named ‘LTI Mindtree Ltd (LTIM)’ with their promoter Larsen & Toubro Ltd (L&T; rated ‘CRISIL AAA/FAAA/Stable/CRISIL A1+’) retaining 68.73% stake in the new entity. The amalgamation will augment the scale of LTI, complement its product offerings and diversify the geographies, verticals and customers served, thus enhancing the overall business risk profile. Also, the financial risk profile is expected to benefit from larger balance sheet strength in the absence of debt and stronger liquidity.

 

The ratings continue to reflect expected sustenance of healthy business performance, supported by the company’s healthy deal pipeline, diversified service offerings across multiple verticals and increasing share of digital revenue. In fiscal 2022, revenue grew by 26% year-on-year, driven by growth across sectors, mainly banking, financial services and insurance (BFSI), which grew 29% on-year, followed by manufacturing (24%) and the consumer-packaged goods (CPG) retail and pharmaceutical segment (24%). Operating margin remained healthy albeit moderating to 19.5% in fiscal 2022, owing to increased employee base despite improved utilization rates.

 

Revenue is expected to grow steadily at 12-15% annually over the medium term. Operating profitability should benefit from efficiency on account of improvement in employee utilization and balanced offshore component. Furthermore, the company’s financial profile continue to be strong, supported by healthy cash generating ability and a debt free balance sheet.

 

The ratings also reflect the strategic focus of the parent, Larsen & Toubro Ltd on the service business. Over the years, the contribution of service business, both in terms of revenue and profitability has been improving. Additionally, L&T has also been leveraging the capabilities of the services segment to augment its core business. The acquisition of Mindtree by L&T in 2019, the initiation of the strategic initiative called L&T Nxt in the same year (taken over by Mindtree in July-2021),  as well as recent amalgamation announcement of Mindtree with LTI bodes well for the information technology business in general and services business in particular.

 

The ratings continue to reflect LTI’s established market position in the banking, financial services, insurance, manufacturing and other segments like Energy and Process, Consumer Packaged Goods, Retail and Pharmaceuticals, and strong financial risk profile marked by a debt free balance sheet, healthy cash generating ability and robust liquidity. Furthermore, the company benefits from the expected support from its parent, and the strength of the L&T brand. These rating strengths are partially offset by customer and geographic concentration in revenue, and exposure to risks related to intense competition in the IT industry in India.

Analytical Approach

CRISIL Ratings has combined the business and financial risk profiles of LTI and its subsidiaries, held directly or indirectly, as all the companies have a common management and are in the same line of business. The ratings also factor in support expected from the parent. LTI will, in case of exigencies, receive the required support from its parent considering the strategic focus of the parent towards service-based businesses

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation

Key Rating Drivers & Detailed Description

Strengths:

Healthy business risk profile, supported by an established market position

The company has an established market position in key verticals and sound operating efficiency. Diversified service offerings, such as application development maintenance, enterprise solutions, infrastructure management services, testing, analytics and artificial intelligence, strengthen the business risk profile of the company.

 

Healthy deal pipeline and high share of digital services in the revenue stream provides strong growth visibility over the medium term.

 

With the company growing faster in digital areas, and with addition of clients, dependence on the top 5, 10 and 20 clients has been reducing gradually over the past 4-5 years – further benefiting business risk profile. The number of active clients has increased from 261 as on December 31, 2017 to 486 as on March 31, 2022 which has resulted in compound annual growth rate of 13% between FY17 and FY22.

 

Strong financial risk profile

The strong financial risk profile is reflected in large networth (Rs 7,815 crore as on March 31, 2022), healthy cash accrual, debt-free balance sheet and robust liquidity (Rs 3,914 crore at March 31, 2022). The company does not expect to undertake any large, debt-funded capital expenditure or acquisition over the medium term. All capacity expansions of Rs 150-Rs 200 crore are expected to be incurred through internal accrual. As LTI has ample cash surplus and there is minimum reliance on debt, the capital structure is expected to be healthy in the absence of gearing over the medium term.

 

Strategic importance to parent, L&T

The IT service business has been increasingly critical to the L&T group in recent years. As against the earlier stance of focusing on infrastructure and capital-intensive segments, the L&T group is now focusing on the service business, which includes financial and IT services. The revision in strategy is also a fallout of lower-than-envisaged performance of the infrastructure business and sustained growth in the service business, which are asset-light, have healthy growth potential and offer high return on capital employed.

 

Over the years, the contribution of service business, both in terms of revenue and profitability has been improving. Additionally, L&T has also been leveraging the capabilities of the services segment to augment its core business. The acquisition of Mindtree by L&T in 2019, the initiation of the strategic initiative called L&T Nxt in the same year (taken over by Mindtree in July-2021),  as well as recent amalgamation announcement of Mindtree with LTI bodes well for the information technology business in general and services business in particular information.

 

Being an L&T group company, LTI also benefits from the strong brand and domain expertise available within the group, resulting in better penetration and acceptability in the market. Treasury operations are supported by L&T Treasury, and critical treasury decisions are taken by the treasury committee, which consists of members from the parent and LTI. The parent and LTI have five common board members.

 

Weakness:

Customer and geographic concentration in revenue

North America contributed 66.5% to the revenue, in fiscal 2022. Any regulatory changes in the region could have a significant impact on operations. Protectionist measures adopted by the US may also pose a business challenge for the company as well as its peers. However, this is an inherent feature of the most major companies in the IT industry as a significant portion of the revenue originate from the US.

 

Exposure to intense competition in the IT industry

The business environment for the IT industry continues to be challenging. IT players in India will need to consistently scale up their operations, primarily on account of intense competition among themselves and from multinational corporations that are expanding their offshore operations in India. The other challenges include maintaining an efficient cost structure, ensuring effective labour retention and utilisation and remaining responsive to the dynamic nature of the industry. With digital services gaining traction, more and more companies are intensifying their focus on the digital technology space, resulting in increased competitive intensity. Given the increasing competition and resultant pricing pressure, the ability to provide differentiated services will remain critical to maintain a competitive advantage.

Liquidity: Superior

Liquidity is robust, driven by expected cash accrual of Rs 1,600-1,800 crore annually in fiscals 2023, and cash and marketable securities of Rs 3,914 crore as on March 31, 2022. The company has remained debt-free for the past six fiscals and is expected to remain so in the absence of any major debt-funded expansion plans over the medium term. Cash accrual will more than sufficiently cover the incremental working capital requirement and small ticket acquisitions.

Outlook: Stable

CRISIL believes LTI will maintain its healthy business risk profile over the medium term, supported by steady revenue growth and sound operating efficiency and the strength of the L&T brand. The financial risk profile is expected to remain strong over this period because of healthy cash accrual, debt free balance sheet, and moderate capital spending.

Rating Sensitivity Factors

Downward Factors

  • Significant decline in revenues by over 10% and fall in the operating margin to below 14%, adversely impacting cash flows
  • Sizeable debt-funded acquisition, leading to material weakening of the debt protection metrics and  liquidity
  • Change in the strategic focus of the parent. L&T, towards service-based businesses and/or weakening of the credit risk profile of the parent.

About the Company

LTI, headquartered in Mumbai, was incorporated in December 1996; the company is a subsidiary of L&T. It provides IT services, including Application, Development, Maintenance, Enterprise Solutions, Infrastructure Management Services, Testing, Analytics, AI and Cognitive and other services. In January 2014, the company transferred its product engineering services division to a group company, Larsen & Toubro Technology Services (‘CRISIL AAA/Stable/CRISIL A1+’).

 

LTI has offshore delivery centres in Mumbai, Pune, Bengaluru, and Chennai; global development centres in the US, Canada, Europe, South Africa, the Middle East, and Singapore; as well as various sales offices.

Key Financial Indicators (Consolidated)

Particulars

Units

2022

2021

Operating income

Rs.Cr

15,669

12,441

Profit After Tax (PAT)

Rs.Cr

2,299

1,938

PAT Margin

%

14.7

15.6

Adjusted Gearing

Time

0.01

0.01

Interest Coverage

Time

48.42

37.17

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. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of

allotment

Coupon

rate(%)

Maturity

date

Issue size

(Rs.Crore)

Complexity

level

Rating assigned with outlook

NA

Bank Guarantee*

NA

NA

NA

25

NA

CRISIL A1+

NA

Bank Guarantee

NA

NA

NA

462

NA

CRISIL A1+

NA

Bank Guarantee^

NA

NA

NA

100

NA

CRISIL AAA/Stable

NA

Packing Credit@

NA

NA

NA

7

NA

CRISIL AAA/Stable

NA

Packing Credit

NA

NA

NA

124

NA

CRISIL A1+

NA

Proposed Bank Guarantee

NA

NA

NA

35

NA

CRISIL A1+

NA

Proposed Overdraft Facility

NA

NA

NA

5

NA

CRISIL AAA/Stable

NA

Supplier Line of Credit

NA

NA

NA

150

NA

CRISIL AAA/Stable

NA

Working Capital Demand Loan

NA

NA

NA

20

NA

CRISIL A1+

NA

Cash Credit/ Overdraft facility^^

NA

NA

NA

32

NA

CRISIL AAA/Stable

NA

Cash Credit/ Overdraft facility

NA

NA

NA

10

NA

CRISIL AAA/Stable

*Fully interchangeable with packing credit

^Fully interchangeable with cash credit/overdraft facility and buyer's credit limits

@Overdraft Facility

^^Interchangeable with Packing Credit facility limits

Annexure - List of Entities Consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

Larsen & Toubro Infotech Canada Ltd

Full

common management, similar line of business, business synergies, and common promoters

Larsen & Toubro Infotech GmbH

Full

common management, similar line of business, business synergies, and common promoters

Larsen & Toubro Infotech LLC

Full

common management, similar line of business, business synergies, and common promoters

L&T Infotech Financial Services Technologies Inc.

Full

common management, similar line of business, business synergies, and common promoters

Larsen And Toubro Infotech South Africa (Proprietary) Ltd

Full

common management, similar line of business, business synergies, and common promoters

L&T Information Technology Services (Shanghai) Co. Ltd.

Full

common management, similar line of business, business synergies, and common promoters

L&T Information Technology Spain, Sociedad Limitada

Full

common management, similar line of business, business synergies, and common promoters

L&T Infotech S.de. RL. C.V

Full

common management, similar line of business, business synergies, and common promoters

Larsen and Toubro lnfotech NORGE AS

Full

common management, similar line of business, business synergies, and common promoters

Larsen and Toubro lnfotech UK Ltd

Full

common management, similar line of business, business synergies, and common promoters

LTI Middle East FZ-LLC

Full

common management, similar line of business, business synergies, and common promoters

Syncordls S.A.

Full

Wholly owned subsidiary

Syncordls Support Services S.A.

Full

Step down subsidiary

Syncordls Ltd, UK

Full

Step down subsidiary

Syncordis France, SARL

Full

Step down subsidiary

Syncordls Software Services India Private Ltd

Full

Step down subsidiary

NIELSEN+ PARTNER UNTERNEHMENSBERATER GMBH

Full

Wholly owned subsidiary

Nielsen+ Partner Unternehmensberater AG

Full

Step down subsidiary

NIELSEN+ PARTNER PTE. LTD

Full

Step down subsidiary

NIELSEN + PARTNER S.A.

Full

Step down subsidiary

NIELSEN & PARTNER Pty Ltd

Full

Step down subsidiary

NIELSEN & PARTNER COMPANY LTD

Full

Step down subsidiary

Ruletronics Systems Private Ltd

Full

Step down subsidiary

RULETRONICS LTD

Full

Step down subsidiary

RULETRONICS SYSTEMS INC.

Full

Wholly owned subsidiary

Lymbyc Solutions Private Ltd

Full

Step down subsidiary

Lymbyc Solutions Inc

Full

Wholly owned subsidiary

Powerupcloud Technologies Private Ltd

Full

Wholly owned subsidiary

Cuelogic Technologies Inc

Full

Step down subsidiary

Cuelogic Technologies Private Ltd

Full

Wholly owned subsidiary

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT/ST 348.0 CRISIL A1+ / CRISIL AAA/Stable   -- 29-04-21 CRISIL A1+ / CRISIL AAA/Stable 20-01-20 CRISIL A1+ / CRISIL AAA/Stable 26-04-19 CRISIL AA+/Positive / CRISIL A1+ CRISIL A1+
Non-Fund Based Facilities ST/LT 622.0 CRISIL A1+ / CRISIL AAA/Stable   -- 29-04-21 CRISIL A1+ / CRISIL AAA/Stable 20-01-20 CRISIL A1+ / CRISIL AAA/Stable 26-04-19 CRISIL AA+/Positive / CRISIL A1+ CRISIL AA+/Stable / CRISIL A1+
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Bank Guarantee* 25 Bank of Baroda CRISIL A1+
Bank Guarantee 22 Citibank N. A. CRISIL A1+
Bank Guarantee 30 HDFC Bank Limited CRISIL A1+
Bank Guarantee 45 HDFC Bank Limited CRISIL A1+
Bank Guarantee 65 ICICI Bank Limited CRISIL A1+
Bank Guarantee^ 100 Standard Chartered Bank Limited CRISIL AAA/Stable
Bank Guarantee 150 The Hongkong and Shanghai Banking Corporation Limited CRISIL A1+
Bank Guarantee 150 Union Bank of India CRISIL A1+
Cash Credit/ Overdraft facility 10 Axis Bank Limited CRISIL AAA/Stable
Cash Credit/ Overdraft facility^^ 32 Citibank N. A. CRISIL AAA/Stable
Packing Credit 20 BNP Paribas Bank CRISIL A1+
Packing Credit 79 Citibank N. A. CRISIL A1+
Packing Credit 25 JP Morgan Chase Bank N.A. CRISIL A1+
Packing Credit@ 7 The Hongkong and Shanghai Banking Corporation Limited CRISIL AAA/Stable
Proposed Bank Guarantee 35 Not Applicable CRISIL A1+
Proposed Overdraft Facility 5 Not Applicable CRISIL AAA/Stable
Supplier Line of Credit 150 The Hongkong and Shanghai Banking Corporation Limited CRISIL AAA/Stable
Working Capital Demand Loan 20 American Express Bank Limited CRISIL A1+

This Annexure has been updated on 19-Aug-22 in line with the lender-wise facility details as on 19-Jul-22 received from the rated entity.

*Fully interchangeable with packing credit

^Fully interchangeable with cash credit/overdraft facility and buyer's credit limits

@Overdraft Facility

^^Interchangeable with Packing Credit facility limits

Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Software Industry
Criteria for Notching up Stand Alone Ratings of Companies based on Parent Support
CRISILs Criteria for Consolidation

Media Relations
Analytical Contacts
Customer Service Helpdesk

Aveek Datta
Media Relations
CRISIL Limited
M: +91 99204 93912
B: +91 22 3342 3000
AVEEK.DATTA@crisil.com

Prakruti Jani
Media Relations
CRISIL Limited
M: +91 98678 68976
B: +91 22 3342 3000
PRAKRUTI.JANI@crisil.com

Rutuja Gaikwad 
Media Relations
CRISIL Limited
B: +91 22 3342 3000
Rutuja.Gaikwad@ext-crisil.com


Anuj Sethi
Senior Director
CRISIL Ratings Limited
B:+91 44 6656 3100
anuj.sethi@crisil.com


Aditya Jhaver
Director
CRISIL Ratings Limited
B:+91 22 3342 3000
Aditya.Jhaver@crisil.com


Ashish Kumar
Manager
CRISIL Ratings Limited
B:+91 22 3342 3000
Ashish.Kumar1@crisil.com
Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com


 

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.


About CRISIL Ratings Limited (A subsidiary of CRISIL Limited)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
 
CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").
 
For more information, visit www.crisilratings.com 

 



About CRISIL Limited

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

CRISIL is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.


For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK


CRISIL PRIVACY NOTICE
 
CRISIL respects your privacy. We may use your contact information, such as your name, address and email id to fulfil your request and service your account and to provide you with additional information from CRISIL. For further information on CRISIL’s privacy policy please visit www.crisil.com.



DISCLAIMER

This disclaimer is part of and applies to each credit rating report and/or credit rating rationale (‘report’) that is provided by CRISIL Ratings Limited (‘CRISIL Ratings’). To avoid doubt, the term ‘report’ includes the information, ratings and other content forming part of the report. The report is intended for the jurisdiction of India only. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the necessary licenses and/or registration to carry out its business activities referred to above. Access or use of this report does not create a client relationship between CRISIL Ratings and the user.

We are not aware that any user intends to rely on the report or of the manner in which a user intends to use the report. In preparing our report we have not taken into consideration the objectives or particular needs of any particular user. It is made abundantly clear that the report is not intended to and does not constitute an investment advice. The report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).

Ratings from CRISIL Ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold or sell any securities/instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue. CRISIL Ratings assumes no obligation to update its opinions following publication in any form or format although CRISIL Ratings may disseminate its opinions and analysis. The rating contained in the report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions. The recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in any way. CRISIL Ratings or its associates may have other commercial transactions with the entity to which the report pertains.

Neither CRISIL Ratings nor its affiliates, third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively, ‘CRISIL Ratings Parties’) guarantee the accuracy, completeness or adequacy of the report, and no CRISIL Ratings Party shall have any liability for any errors, omissions or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the report. EACH CRISIL RATINGS PARTY DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall any CRISIL Ratings Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. Public ratings and analysis by CRISIL Ratings, as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other applicable regulations, if any), are made available on its website, www.crisilratings.com (free of charge). Reports with more detail and additional information may be available for subscription at a fee – more details about ratings by CRISIL Ratings are available here: www.crisilratings.com.

CRISIL Ratings and its affiliates do not act as a fiduciary. While CRISIL Ratings has obtained information from sources it believes to be reliable, CRISIL Ratings does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and/or relies on in its reports. CRISIL Ratings has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL Ratings has in place a ratings code of conduct and policies for managing conflict of interest. For details please refer to:
https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html.

Rating criteria by CRISIL Ratings are generally available without charge to the public on the CRISIL Ratings public website, www.crisilratings.com. For latest rating information on any instrument of any company rated by CRISIL Ratings, you may contact the CRISIL Ratings desk at crisilratingdesk@crisil.com, or at (0091) 1800 267 1301.

This report should not be reproduced or redistributed to any other person or in any form without prior written consent from CRISIL Ratings.

All rights reserved @ CRISIL Ratings Limited. CRISIL Ratings is a wholly owned subsidiary of CRISIL Limited.

 

 

CRISIL Ratings uses the prefix ‘PP-MLD’ for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisil.com/en/home/our-businesses/ratings/credit-ratings-scale.html