Rating Rationale
July 21, 2023 | Mumbai
Revathi Equipment Limited
Ratings Withdrawn
 
Rating Action
Total Bank Loan Facilities RatedRs.99.28 Crore
Long Term RatingCRISIL BBB+/Stable (Withdrawn)
Short Term RatingCRISIL A2 (Withdrawn)
 
Rs.35 Crore Short Term DebtCRISIL A2 (Withdrawn)
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CRISIL Ratings has withdrawn its ratings on bank facilities and short-term debt progarm of Revathi Equipment Ltd (REL) following announcement of filing of certified NCLT order copy with Registrar of Companies(ROC).The rating action is in line with CRISIL Ratings’ policy on withdrawal of bank loan ratings.

Analytical Approach

For arriving at the ratings, CRISIL Ratings has considered the standalone business and financial risk profiles of REL.

About the Company

REL, incorporated in 1977 manufactures blast-hole drills (rotary and down-the-hole, diesel/electric driven) for mining applications, jack less-drills, water well drills, hydro-fracturing units, and exploratory drills. These are used extensively in coal, copper, gold, iron, zinc, phosphate, bauxite, lignite, and limestone mines. Plant is in Malumichampatti in Coimbatore, Tamil Nadu.

 

REL predominantly supplies to CIL and its subsidiaries, including Northern Coalfields Singrauli, South Eastern Coalfields Bilaspur, Central Coalfields Ranchi, Western Coalfields Nagpur, and Eastern Coalfields Ltd. Other prominent customers in DED include Department of Supplies, Chennai; Tata Steel Ltd; and Hindustan Zinc Ltd. REL had a construction equipment division which discontinued operations in fiscal 2015 due to poor business prospects.

Key Financial Indicators

As on / for the period ended March 31  Units 2023* 2022
Revenue Rs crore 114 181
PAT Rs crore 13 13
PAT margin % 11.3 7.2
Adjusted debt/adjusted net worth Times 0.16 0.18
Interest coverage Times 6.27 4.83

*Standalone financials of REL has been considered post the scheme of arrangement

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.

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Annexure - Details of Instrument(s)

ISIN Name of instrument Date of
allotment
Coupon
rate (%)
Maturity
date
Issue size
(Rs crore)
Complexity 
levels
Rating assigned
with outlook
NA Cash Credit NA NA NA 48.33 NA Withdrawn
NA Letter of Credit & Bank Guarantee NA NA NA 37.55 NA Withdrawn
NA Proposed Fund-Based Bank Limits NA NA NA 10 NA Withdrawn
NA Short Term Debt  NA NA 7-365 days 35 Simple Withdrawn
NA Working capital Term Loan NA NA 08th May 2027 3.4 NA Withdrawn
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 61.73 Withdrawn 30-06-23 CRISIL BBB+/Stable 09-11-22 CRISIL BBB+/Watch Developing 22-07-21 CRISIL BBB+/Stable 05-08-20 CRISIL BBB+/Stable CRISIL BBB+/Stable
      -- 27-04-23 CRISIL BBB+/Watch Developing 11-08-22 CRISIL BBB+/Watch Developing   -- 22-07-20 CRISIL BBB+/Stable --
      -- 30-01-23 CRISIL BBB+/Watch Developing 13-05-22 CRISIL BBB+/Watch Developing   -- 23-06-20 CRISIL BBB+/Stable --
Non-Fund Based Facilities ST 37.55 Withdrawn 30-06-23 CRISIL A2 09-11-22 CRISIL A2/Watch Developing 22-07-21 CRISIL A2 05-08-20 CRISIL A2 CRISIL A2
      -- 27-04-23 CRISIL A2/Watch Developing 11-08-22 CRISIL A2/Watch Developing   -- 22-07-20 CRISIL A2 --
      -- 30-01-23 CRISIL A2/Watch Developing 13-05-22 CRISIL A2/Watch Developing   -- 23-06-20 CRISIL A2 --
Short Term Debt ST 35.0 Withdrawn 30-06-23 CRISIL A2 09-11-22 CRISIL A2/Watch Developing 22-07-21 CRISIL A2 05-08-20 CRISIL A2 CRISIL A2
      -- 27-04-23 CRISIL A2/Watch Developing 11-08-22 CRISIL A2/Watch Developing   -- 22-07-20 CRISIL A2 --
      -- 30-01-23 CRISIL A2/Watch Developing 13-05-22 CRISIL A2/Watch Developing   -- 23-06-20 CRISIL A2 --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Cash Credit 2 ICICI Bank Limited Withdrawn
Cash Credit 21 Bank of India Withdrawn
Cash Credit 10 Bank of Baroda Withdrawn
Cash Credit 15.33 State Bank of India Withdrawn
Letter of credit & Bank Guarantee 9 Bank of India Withdrawn
Letter of credit & Bank Guarantee 20 ICICI Bank Limited Withdrawn
Letter of credit & Bank Guarantee 8.55 Bank of Baroda Withdrawn
Proposed Fund-Based Bank Limits 10 Not Applicable Withdrawn
Working Capital Term Loan 3.4 Bank of India Withdrawn
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 Engineering Sector
CRISILs Criteria for rating short term debt

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