RATING RATIONALE
24Mar2021

Ansal Properties & Infrastructure Ltd

Brickwork Ratings reaffirms/revises the ratings for the Bank Loan Facilities of Rs. 200.00 Crs. of Ansal Properties & Infrastructure Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(31 Dec 2019)
Present
Non Fund Based 200.00 200.00 Long Term BWR B /Negative
Downgrade
BWR C
Downgrade
Grand Total 200.00 200.00 (Rupees Two Hundred 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


RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) has revised the rating to BWR C from BWR B-/Negative for the bank loan facilities of Ansal Properties & Infrastructure Limited (APIL). 

The rating reflects the poor liquidity position of the company,  and weak credit profile marked by widened up net losses during FY-20, slow progress in on-going projects and inadequate debt coverage indicators.

KEY RATING DRIVERS


Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

BWR has factored in the standalone business parameters and financial risk profile of the company to arrive at the rating. BWR has applied its rating methodology as detailed in the rating criteria detailed below (hyperlinks provided at the end of this rationale).  

RATING SENSITIVITIES

Positive: BWR may revise the ratings upward in the case there is improvement in overall financial risk profile, healthy progress in on going projects and improvement in overall liquidity profile.

Negative: BWR may revise the rating downward in the case there is default in bank guarantee limits.  

LIQUIDITY INDICATORS - Poor

For the last few years, Ansal Group has been facing liquidity constraints on account of slow pace of sales in its projects impacting the progress of construction as well. Also, a notable amount of funds is blocked in the form of land bank which the company is not able to monetize. Many of their ongoing projects have not been able to achieve financial closure and thus, lack of required funds is the reason for these projects being stuck. In the absence of bank funding, the company relies heavily on customer advances making it even difficult for them to complete the projects, since, fresh sales are negligible and payments from already sold area are linked with construction. On account of all this, the company’s liquidity position is poor and the same has impacted their ability to service obligations in some of their project loans.. 

ABOUT THE ENTITY

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 19-20
(Audited)
FY 18-19
(Audited)
Operating Revenue Rs.Crs. 794.38 613.58
EBITDA Rs.Crs. 145.46 66.04
PAT Rs.Crs. -203.75 -60.19
Tangible Net Worth Rs.Crs. 209.62 423.04
Total Debt/Tangible Net Worth Times 1.97 1.11
Current Ratio Times 0.87 0.90
KEY COVENANTS OF THE FACILITY RATED

NA


NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

CARE has migrated the rating of APIL to BWR D issuer non cooperation category on 24 June 2020.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT NA
NA
NA
NA
NA
NA
26Jun2018
BWR BB-(SO)/Stable
Non Fund Based LT 200.00
BWR C
NA
NA
31Dec2019
BWR B/Negative
26Jun2018
BWR B/negative
Grand Total 200.00 (Rupees Two Hundred Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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

Akhil Khurana

Ratings Analyst Board : +91 11 2341 2232 akhil.k@brickworkratings.com

Tanu Sharma

Director - Ratings tanusharma@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Ansal Properties & Infrastructure Ltd
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Bank GuaranteeSanctioned 200.00 _ 200.00
Total 200.00 0.00 200.00
TOTAL (Rupees Two Hundred Crores Only)
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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

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