RATING RATIONALE
06Jun2024

Hindusthan Urban Infrastructure Limited.

Brickwork Ratings downgrades the Long-term ratings and reaffirms the Short-term ratings for the Bank Loan Facilities of Rs. 180.00 Crs. of Hindusthan Urban Infrastructure Limited. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(07 Jun 2023)
Present
Fund Based 91.00 91.00 Long Term BWR BB /Negative
ISSUER NOT COOPERATING*/Downgraded
BWR BB - /Negative
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 89.00 89.00 Short Term BWR A4
ISSUER NOT COOPERATING*/Downgraded
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 180.00 180.00 (Rupees One Hundred Eighty Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings (BWR) has consistently taken up with the company through emails and telephone calls to provide the requisite information for the review of the ratings. Despite the best efforts of BWR to get at least the minimum required information for a review, the company continues to be non-cooperative. Further, the company has not been submitting the monthly ‘No Default Statement’ (NDS) in deviation from the extant guidelines. BWR is unable to assess the entity’s financial performance and its ability to service its debt and maintain a valid rating. Despite the best efforts of BWR to get at least the minimum required information for a review of ratings, the banker has not responded on the same. Hence, on account of inadequate information and lack of management cooperation, BWR has downgraded the Long-term rating at BWR BB- /Negative and reaffirms the Short-term ratings at BWR A4 & continue the rating under Issuer Non-Cooperating category.

The lenders/investors may note to exercise due caution while using the rating which mentions "Issuer Not Cooperating" since the rating lacks any projections or forward-looking component as it is arrived at based on the best available information without any management/banker's interaction.

LIMITATIONS OF THE RATING

 Information availability risk is a key factor in the assessment of credit risk as generally non-cooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non-transparency and withholding of information required for a review of the rating

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Industrials Capital Goods Industrial Manufacturing Industrial Products

Hindusthan Urban Infrastructure Ltd (HUIL) was Incorporated in 1959 and was established by the name of ‘The Indian Aluminium Cables Limited’ and was later renamed to ‘Hindusthan Vidyut Products Limited’ before being renamed to its current name. The company is part of the Hindusthan Group which is promoted by Mr Rajendra Prasad Mody and his family. The company was into manufacturing of the bare overhead conductors, operations of which were temporarily discontinued during Q4FY23. Presently, it is engaged in manufacturing of HT insulators (mainly Disc, Bushing and Solid Core types of insulators) at its manufacturing facility at Mandideep (Madhya Pradesh) with an annual installed capacity of 14,400 MT. HUIL’s subsidiary viz. Hindusthan Speciality Chemicals Limited (HSCL) was incorporated on July 11, 2003, by the name of Bharat Electric and Industries Limited and was subsequently renamed to its current name on September 11, 2013. HSCL is engaged in manufacturing of Epoxy Resin (ER) at its manufacturing facility at GIDC Industrial Estate of Jhagadia near Ankaleshwar, Gujarat with an installed capacity of 17,400 MT. 

(As per the information available with BWR on Aug 2022 review.)

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

There is No Non-Cooperation from other Credit Rating Agencies.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 91.00
BWR BB-/Negative
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
07Jun2023
BWR BB Negative
(ISSUER NOT COOPERATING*/Downgraded)
24Mar2022
BWR BBB- Stable
(Reaffirmation)
05Mar2021
BWR BBB-Stable
(Reaffirmation)
0.00
NA
NA
NA
23Aug2022
BWR BBB- Negative
(Reaffirmation and change in Outlook)
NA
NA
Non Fund Based ST 89.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
07Jun2023
BWR A4
(ISSUER NOT COOPERATING*/Downgraded)
24Mar2022
BWR A3
(Reaffirmation)
05Mar2021
BWR A3
(Reaffirmation)
0.00
NA
NA
NA
23Aug2022
BWR A3
(Reaffirmation)
NA
NA
Grand Total 180.00 (Rupees One Hundred Eighty Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Vidit Goel

Ratings Analyst vidit.g@brickworkratings.com

Suryanarayan N

Associate Director - Ratings suryanarayan.n@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Hindusthan Urban Infrastructure Limited.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Canara Bank Term LoanSanctioned 10.92 _ 10.92
2 Canara Bank Cash CreditSanctioned 5.00 _ 5.00
3 Canara Bank GECLSanctioned 8.00 _ 8.00
4 Canara Bank ILC/FLCSanctioned _ 25.00 25.00
5 Canara Bank BG/LC/ILCSanctioned _ 35.00 35.00
6 IDBI Bank Cash CreditSanctioned 10.00 _ 10.00
7 IDBI Bank GECLSanctioned 4.00 _ 4.00
8 IDBI Bank BG/LC/ILCSanctioned _ 15.00 15.00
9 State Bank Of India (SBI) Funded Interest Term LoanSanctioned 0.56 _ 0.56
10 State Bank Of India (SBI) Cash CreditSanctioned 40.00 _ 40.00
11 State Bank Of India (SBI) BG/LC/ILCSanctioned _ 14.00 14.00
12 State Bank Of India (SBI) GECLSanctioned 12.52 _ 12.52
Total 91.00 89.00 180.00
TOTAL (Rupees One Hundred Eighty Crores Only)
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