Rating Rationale
October 26, 2023 | Mumbai
Ramky Infrastructure Limited
Issuer not cooperating, based on best-available information; Rating continues to be ‘CRISIL C Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.1214.82 Crore
Long Term RatingCRISIL C (ISSUER NOT COOPERATING*)
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
*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 rating rationale did not provide the requisite information needed to conduct the rating exercise or did not provide the No Default Statements (NDS) for the last three months and is therefore classified as 'non cooperative'.

Non cooperation by Issuer

CRISIL Ratings has been consistently following up with Ramky Infrastructure Ltd (RIL)  for obtaining information through letters and email dated June 27, 2022, July 8, 2022, July 20, 2022 and July 25, 2022, August 23, 2023 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, the rating on bank facilities of RIL continues to be 'CRISIL C Issuer Not Cooperating'.

Analytical Approach

CRISIL Ratings has considered standalone business and financial risk profiles of RIL. CRISIL Ratings has also 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.

Key Financial Indicators (Standalone)*

Particulars

Unit

2023

2022

Operating Income

Rs crore

1474

1298

Profit after tax (PAT)

Rs crore

302

146

PAT margin

%

14.6

9.1

Adjusted debt/adjusted networth

Times

0.66

0.87

Adjusted Interest coverage

Times

5.57

2.24

*as per analytical adjustments made by CRISIL Ratings

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)*

ISIN Name of the
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 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 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 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 ISBUS Terminal Ltd

Moderate

Expected equity support including cost overrun during construction and support to the extent of cashflow mismatches during operations

Ramky Towers Limited

Moderate

Ramky Enclave Limited

Moderate

Ramky MIDC Agro Processing Park Limited

Moderate

Ramky Multi Product Industrial Park Limited

Moderate

Sehore Kosmi Tollways Limited

Moderate

. Hospet Chitradurga Tollways Limited

Moderate

Frank Lloyd Tech Management Services Limited

Moderate

Pantnagar CETP Private Limited

Moderate

Hyderabad STPS’ Limited

Moderate

Ever Blooming Eco Solutions Limited

Moderate

Srinagar Banihal Expressway Ltd

Moderate

Ramky Elsamex Hyderabad Ring Road Ltd

Moderate

Ramky Pharmacity India Ltd

Moderate

Annexure - Rating History for last 3 Years
  Current 2023 (History) 2022  2021  2020  Start of 2020
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)*   -- 29-07-22 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)*   -- 29-07-22 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 33.23 CRISIL C (Issuer Not Cooperating)*
Bank Guarantee 52.59 CRISIL C (Issuer Not Cooperating)*
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)*
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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