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    Khandke Wind Energy Private Limited: Rating Withdrawn


    May 10, 2022 - SeeNews Debt

     

      Khandke Wind Energy Private Limited: Rating Withdrawn

      Summary of rating action

      Instrument^

      Previous Rated Amount (Rs. crore)

      Current Rated Amount (Rs. crore)

      Rating Action

      Term Loan

      656.09

      0.00

      [ICRA]A (Stable); Withdrawn Total 656.09 0.00

      ^Instrument details are provided in Annexure-1

      Rationale

      The long-term rating assigned to Khandke Wind Energy Private Limited (KWEPL) has been withdrawn at the request of the company and based on the no dues certificate received from the banker, and in accordance with ICRA's policy on withdrawal and suspension. ICRA is withdrawing the rating and it does not have information to suggest that the credit risk of the company has changed since the time the rating was last reviewed. The Key rating drivers, Liquidity position and Rating sensitivities have not been captured as the rated instruments are being withdrawn.

      The previous detailed rating rationale is available at the following link: Click here

      Analytical approach Analytical Approach Comments Applicable Rating Methodologies

      Corporate Credit Rating Methodology

      Rating Methodology for Wind Power Producers

      Rating Approach - Implicit Parent or Group Support

      ICRA Policy on Withdrawal of Credit Rating Parent/Group Support

      Parent: Greenko Energy Holdings (GEH)

      The assigned ratings factor in the high likelihood of the ultimate parent, GEH, extending financial support to KWEPL, should there be a need, as evidenced by the presence of corporate guarantee for the working capital borrowings availed by the company. Moreover, fund support would also be extended in the event of shortfall in these SPVs, as a part of terms of sanction for term loan facilities. Consolidation/Standalone

      The ratings are based on the consolidated business and financial profiles of KWEPL and the following four entities, given the fungibility of cash flows among them because of the presence of a co-obligor mechanism as a part of the loan documents, and their common parentage, all being wholly owned subsidiaries of Greenko Power Projects (Mauritius) Limited (GPPML), which in turn is a 100% step down subsidiary of GEH.

      1. Ratedi Wind Power Private Limited (RWPPL)

      2. Lalpur Wind Energy Private Limited (LWEPL)

      3. Wind Urja India Private Limited (WUIPL)

      4. Etesian Urja Limited (EUL)

      www.icra .in

      Page | 2

      About the company

      KWEPL is an SPV formed for setting up wind farms with an aggregate capacity of 125.6 MW in four states viz. Maharashtra, Rajasthan, Andhra Pradesh and Gujarat, with capacities of 36.8 MW, 44 MW, 31.2 MW and 13.6 MW, respectively. Earlier, the company was entirely held by the IL&FS Group. In March 2016, the ownership pattern changed, following the sale of equity stake to ORIX Corporation, Japan, resulting in effective ownership of a 49% stake in the company. On October 15,2019, ORIX Corporation, pursuant to the NCLT order, acquired the remaining 51% stake of the IL&FS group, giving it 100% ownership of the company. On March 05,2021, KWEPL and other 6 SPVs of ORIX Corporation were transferred to the Greenko Group, as a part of a USD 961 million transaction, in exchange of a 21.8% stake for ORIX Corporation in GEH.

      Key financial indicators (Standalone) - KWEPL Particulars FY2020 (Audited) FY2021 (Audited) Operating Income (Rs. crore)

      130.73

      112.39 PAT (Rs. crore)

      -1.85

      13.63 OPBDIT/OI (%)

      86.67%

      82.85% PAT/OI (%)

      -1.42%

      12.13%

      Total Outside Liabilities/Tangible Net Worth (times)

      1.94

      1.75 Total Debt/OPBDIT (times)

      4.23

      4.89 Interest Coverage (times)

      2.08

      1.88

      Source: Company, ICRA Research; All ratios as per ICRA calculations; PAT: Profit after Tax; OPBDIT: Operating Profit before Depreciation, Interest, Taxes and Amortisation

      Key financial indicators (Standalone) - RWPPL Particulars FY2020 (Audited) FY2021 (Audited) Operating Income (Rs. crore)

      102.53

      88.79 PAT (Rs. crore)

      11.34

      -0.47 OPBDIT/OI (%)

      81.24%

      77.85% PAT/OI (%)

      11.06%

      -0.52%

      Total Outside Liabilities/Tangible Net Worth (times)

      2.77

      2.66 Total Debt/OPBDIT (times)

      5.52

      6.46 Interest Coverage (times)

      1.51

      1.51

      Source: Company, ICRA Research; All ratios as per ICRA calculations; PAT: Profit after Tax; OPBDIT: Operating Profit before Depreciation, Interest, Taxes and Amortisation

      Key financial indicators (Standalone) - EUL Particulars FY2020 (Audited) FY2021 (Audited) Operating Income (Rs. crore)

      75.74

      63.96 PAT (Rs. crore)

      13.12

      6.20 OPBDIT/OI (%)

      85.08%

      83.79% PAT/OI (%)

      17.32%

      9.69%

      Total Outside Liabilities/Tangible Net Worth (times)

      3.13

      2.84

      www.icra .in

      Page | 3

      Total Debt/OPBDIT (times)

      5.50

      6.30 Interest Coverage (times)

      1.78

      1.56

      Source: Company, ICRA Research; All ratios as per ICRA calculations; PAT: Profit after Tax; OPBDIT: Operating Profit before Depreciation, Interest, Taxes and Amortisation

      Key financial indicators (Standalone) - WUIPL Particulars FY2020 (Audited) FY2021 (Audited) Operating Income (Rs. crore)

      30.05

      28.46 PAT (Rs. crore)

      0.34

      0.25 OPBDIT/OI (%)

      78.59%

      72.37% PAT/OI (%)

      1.14%

      0.88%

      Total Outside Liabilities/Tangible Net Worth (times)

      2.29

      2.18 Total Debt/OPBDIT (times)

      5.88

      6.51 Interest Coverage (times)

      1.71

      1.64

      Source: Company, ICRA Research; All ratios as per ICRA calculations; PAT: Profit after Tax; OPBDIT: Operating Profit before Depreciation, Interest, Taxes and Amortisation

      Key financial indicators (Standalone) - LWEPL Particulars FY2020 (Audited) FY2021 (Audited) Operating Income (Rs. crore)

      180.30

      152.49 PAT (Rs. crore)

      -4.39

      13.33 OPBDIT/OI (%)

      84.76%

      79.92% PAT/OI (%)

      -2.43%

      -8.74%

      Total Outside Liabilities/Tangible Net Worth (times)

      8.22

      8.90 Total Debt/OPBDIT (times)

      6.02

      7.36 Interest Coverage (times)

      1.38

      1.21

      Source: Company, ICRA Research; All ratios as per ICRA calculations; PAT: Profit after Tax; OPBDIT: Operating Profit before Depreciation, Interest, Taxes and Amortisation

      www.icra .in

      Page | 4

      Status of non-cooperation with previous CRA: Not applicable

      Any other information: None

      Rating history for past three years SN Instrument Current Rating (FY2023) Chronology of Rating History for the past 3 years Type Amount Rated (Rs. crore) Amount Outstanding *(Rs. crore) Date & Rating Date & Rating in FY2022 Date & Rating in FY2021 Date & Rating in FY2020 May 10,2022 May 12,2021 Sep 24,2020 Feb 13,2020 Oct 24,2019 Sep 13,2019 Jul 10,2019 May 13,19 1

      Term Loans

      Long-term

      656.09

      0

      [ICRA]A (Stable) withdrawn

      [ICRA]A (Stable)

      [ICRA]A+@

      [ICRA]AA- (Stable)

      [ICRA]BB- &

      [ICRA]BB-

      (Negative)

      [ICRA]BB+

      (Negative)

      [ICRA]BBB

      (Negative) 2

      WCDL

      Short-term

      -

      [ICRA]A1 withdrawn

      [ICRA]A1@

      [ICRA]A1+

      -

      -

      -

      -

      * as on March 31,2022; @ on watch with negative implications; & on watch with developing implications

      Complexity level of the rated instrument

      Instrument Complexity Indicator

      Term Loan

      Simple

      The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analyzing an entity's financial, business, industry risks or complexity related to the structural, transactional, or legal aspects. Details on the complexity levels of the instruments, is available on ICRA's website: www.icra.in

      www.icra .in

      Page | 5

      Annexure-1: Instrument details ISIN No Instrument Name Date of Issuance / Sanction Coupon Rate Maturity Date Amount Rated (RS Crore) Current Rating and Outlook NA

      Term Loan

      FY2018

      -

      FY2035*

      656.09

      [ICRA]A (Stable) withdrawn

      Source: Company; * prepaid before the maturity date

      Annexure-2: List of entities considered for consolidated analysis Company Name Remark Consolidation Approach Ratedi Wind Power Private Limited

      Group Entity

      Full consolidation Lalpur Wind Energy Private Limited

      Group Entity

      Full consolidation Wind Urja India Private Limited

      Group Entity

      Full consolidation Etesian Urja Limited

      Group Entity

      Full consolidation

      * all entities are 100% owned by the same parent, GPPML

      www.icra .in

      Page | 6

      ANALYST CONTACTS

      Sabyasachi Majumdar

      +91 124 4545 304

      sabyasachi@icraindia.com

      Girishkumar Kadam

      +91 22 6114 3441

      girishkumar@icraindia.com

      Vikram V

      +91 40 40676518

      vikram.v@icraindia.com

      Tushar Bharambe

      +91 22 6169 3347

      tushar.bharambe@icraindia.com

      RELATIONSHIP CONTACT

      L Shivakumar

      +91 22 6614 3406

      shivakumar@icraindia.com

      MEDIA AND PUBLIC RELATIONS CONTACT

      Ms. Naznin Prodhani

      Tel: +91 124 4545 860

      communications@icraindia.com

      Helpline for business queries

      +91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)

      info@icraindia.com

      About ICRA Limited:

      ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.

      Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit Rating Agency Moody's Investors Service is ICRA's largest shareholder.

      For more information, visit www.icra.in

      ICRA Limited

      Registered Office

      B-710, Statesman House, 148, Barakhamba Road, New Delhi-110001

      Tel: +91 11 23357940-45

      Branches

      © Copyright, 2022 ICRA Limited. All Rights Reserved.

      Contents may be used freely with due acknowledgement to ICRA.

      ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA's current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.

      Agency Website: http://www.icra.in

      ******

      SeeNews does not endorse in any way, the views, opinions or recommendations expressed above. The use of the information is subject to the terms and conditions as published by the original source, which you have to read and accept in full prior to the execution of any actions taken in reliance on information contained herein.

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