Rating Rationale
July 29, 2022 | Mumbai
Ramky Infrastructure Limited
Issuer not cooperating, based on best-available information; Rating migrated to 'CRISIL C Issuer Not Cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.1214.82 Crore
Long Term RatingCRISIL C (ISSUER NOT COOPERATING*; Rating Migrated)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
 
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Ramky Infrastructure Limited (RIL) for obtaining information through letters and emails dated June 27, 2022, July 8, 2022, July 20, 2022 and July 25, 2022 among others, apart from telephonic communication. However, the issuer has remained non cooperative.

 

‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of RIL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RIL is consistent with ‘Assessing Information Adequacy Risk’. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of RIL to 'CRISIL C Issuer Not Cooperating' from ‘CRISIL C’.

Analytical Approach

CRISIL Ratings has combined the business and financial risk profiles of RIL and its special purpose vehicle (SPV) Sehore Kosmi Tollways Ltd where the company has extended corporate guarantee of Rs 5.12 crore. The company has also extended corporate guarantee to its SPV, Srinagar Banihal Expressway Ltd. However, given the validity of the same is being contested in the High Court, the debt of these SPVs have not been consolidated with RIL. CRISIL Ratings has moderately combined the business and financial risk profiles of RIL with its subsidiaries to the extent of support requirement.

 

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

About the Company

RIL, the flagship company of the Ramky group, was incorporated as Ramky Engineers Pvt Ltd in 1994 to provide civil and environmental engineering consultancy services. In 1998, it started executing civil and environmental engineering, procurement, and construction projects, primarily in the water and waste-water sector. Subsequently, it expanded into road, building, irrigation, and industrial construction. In 2003, the company got its present name and was thereafter reconstituted as a public limited company. RIL principally operates in two business segments: construction (under RIL) and development (under SPVs). In the development business, the group constructs roads under built-operate-transfer (BOT modes, industrial parks, special economic zones, and bus terminals.

 

RIL’s debt was restructured in June 2015 by the Joint Lenders Forum comprising seven lenders.

Key Financial Indicators (Standalone)

Particulars

Unit

2022 (Provisional)

2021

Revenue

Rs.Crore

1297

912

Profit After Tax (PAT)

Rs.Crore

118

54

PAT Margin

%

9.1

5.9

Adjusted debt/adjusted networth

Times

0.87

1.15

Interest coverage

Times

1.5

1.78

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

Working Capital Loan

NA

NA

NA

155.0

NA

CRISIL C/Issuer Not Cooperating

NA

Working Capital Loan**

NA

NA

NA

45.7

NA

CRISIL C/Issuer Not Cooperating

NA

Cash Credit

NA

NA

NA

110.0

NA

CRISIL C/Issuer Not Cooperating

NA

Cash Credit**

NA

NA

NA

30.47

NA

CRISIL C/Issuer Not Cooperating

NA

Bank Guarantee

NA

NA

NA

749.82

NA

CRISIL C/Issuer Not Cooperating

NA

Bank Guarantee@

NA

NA

NA

98.83

NA

CRISIL C/Issuer Not Cooperating

NA

Letter of Credit

NA

NA

NA

25.0

NA

CRISIL C/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

**Interchangeable with non-fund based facility

@Interchangeable with fund based facility

Annexure - List of Entities Consolidated

Entity consolidated

Extent of consolidation

Rationale for consolidation

MDDA-Ramky IS Bus Terminal Ltd

Full

Corporate guarantee extended by RIL

Srinagar Banihal Expressway Ltd

Moderate

Corporate guarantee extended by RIL. However the validity of the same is being contested in the High Court, so the debt has not been consolidated with RIL. Support to the extent of cashflow mismatches in operations

Ramky Elsamex Hyderabad Ring Road Ltd

Moderate

No recourse of project debt to RIL. Support to the extent of cashflow mismatches in operations

Ramky Pharmacity India Ltd

Moderate

RIL holds majority stake and is part of key operations; support to the extent of cashflow mismatches

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 341.17 CRISIL C (Issuer Not Cooperating)*   -- 25-05-21 CRISIL C 27-02-20 CRISIL D   -- CRISIL D
Non-Fund Based Facilities LT 873.65 CRISIL C (Issuer Not Cooperating)*   -- 25-05-21 CRISIL C 27-02-20 CRISIL D   -- CRISIL D
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Bank Guarantee 475 CRISIL C (Issuer Not Cooperating)*
Bank Guarantee@ 98.83 CRISIL C (Issuer Not Cooperating)*
Bank Guarantee 189 CRISIL C (Issuer Not Cooperating)*
Bank Guarantee 33.23 CRISIL C (Issuer Not Cooperating)*
Bank Guarantee 52.59 CRISIL C (Issuer Not Cooperating)*
Cash Credit 98 CRISIL C (Issuer Not Cooperating)*
Cash Credit** 30.47 CRISIL C (Issuer Not Cooperating)*
Cash Credit 12 CRISIL C (Issuer Not Cooperating)*
Letter of Credit 25 CRISIL C (Issuer Not Cooperating)*
Working Capital Loan 147 CRISIL C (Issuer Not Cooperating)*
Working Capital Loan** 45.7 CRISIL C (Issuer Not Cooperating)*
Working Capital Loan 8 CRISIL C (Issuer Not Cooperating)*

*Issuer did not cooperate; based on best-available information

**Interchangeable with non-fund based facility

@Interchangeable with fund based facility

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
Assessing Information Adequacy Risk
Rating Criteria for Construction Industry
CRISILs Approach to Recognising Default
CRISILs Criteria for Consolidation

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