Khandke Wind Energy Private Limited: Rating Withdrawn

Khandke Wind Energy Private Limited: Rating Withdrawn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[ICRA]A (Stable); Withdrawn Total 656.09 0.00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The long-term rating assigned to Khandke Wind Energy Private Limited (KWEPL) has been withdrawn at the request of the company and based on the no dues certificate received from the banker, and in accordance with ICRA's policy on withdrawal and suspension.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rating drivers, Liquidity position and Rating sensitivities have not been captured as the rated instruments are being withdrawn.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)

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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

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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

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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

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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

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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

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