RATING RATIONALE
30Oct2024

Reliance Infrastructure Ltd

Brickwork Ratings has reaffirmed the ratings for the Bank Loan Facilities of Rs. 2.63 Crs. of Reliance Infrastructure Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(02 Aug 2023)
Present
Fund Based 82.61 2.63 Long Term BWR D
removal from ISSUER NOT COOPERATING* category/Reaffirmed
BWR D
Reaffirmation
Grand Total 82.61 2.63 (Rupees Two Crores and Sixty Three lakhs 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

BWR has reaffirmed the bank loan ratings at BWR D. As per feedback received from the lender (Canara Bank), Reliance Infrastructure Limited (Reliance Infra) has repaid its term loan obligation. However, the reconciliation process with the bank is under process and the bank is yet to issue a No Due Certificate (NDC) to the company for repayment of debt. 

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Consolidated

BWR has adopted a consolidated approach to assess the company's operational and financial performance, considering the promoters' contributions and all current business segments in determining the rating. The ratings were derived using BWR's established rating methodology, as outlined in the Rating Criteria provided at the end of the presentation.

RATING SENSITIVITIES

Positive:

Track record of timely servicing of its debt obligations for at least a couple of quarters might lead to a positive rating action.

LIQUIDITY INDICATORS - Poor

At the consolidated level, liquidity remains poor. As on March 31, 2024, the company holds cash and cash equivalents totaling Rs.2,081.27 crore, an EBITDA of Rs. 2,162.36 crore, and net cash accruals of Rs. 385.86 crore. Against this, Reliance Infra has an annual interest commitment of around Rs. 2,310.07 crore and the current portion of long-term debt, totaling ₹3,949.54 crore reflecting insufficiency of internal resources to meet debt servicing obligations. The company's debt coverage ratios reflect a concerning financial position, highlighted by a low-interest Coverage Ratio (ICR) of 0.94 times and a Debt Service Coverage Ratio (DSCR) of 0.38 times.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Utilities Power Power Power Distribution

R-Infra is the group's flagship company (the Reliance ADAG group) and is promoted by Mr. Anil D. Ambani. The Company is one of the largest infrastructure companies engaged in developing infrastructure projects through various Special Purpose Vehicles (SPVs) in several sectors such as power, roads, metro rail, and airports in the infrastructure space and the defense sector. The Co. is also a leading utility Company with a presence across the value chain of power businesses i.e. generation, transmission, distribution and power trading.

The Company is a public limited Company and its equity and debts are listed on two recognized stock exchanges in India i.e. BSE and NSE.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 22 - 23
(Audited)
FY 23 - 24
(Audited)
FY 24 - 25
(Unaudited - Midterm-Q1)
Operating Revenue Rs.Crs. 810.00 424.68 31.00
EBITDA Rs.Crs. -180.20 -298.79 -55.00
PAT Rs.Crs. -3197.70 -1930.25 -206.00
Tangible Net Worth Rs.Crs. 7352.04 6307.27 Not Available
Total Debt / Tangible Net Worth Times 0.46 0.49 Not Available
Current Ratio Times 1.16 1.12 Not Available
KEY FINANCIAL INDICATORS (Consolidated)
Key Parameters Units FY 22 - 23
(Audited)
FY 23 - 24
(Audited)
FY 24 - 25
(Unaudited - Midterm-Q1)
Operating Revenue Rs.Crs. 20741.92 22066.86 7193.00
EBITDA Rs.Crs. 1342.86 2162.36 676.00
PAT Rs.Crs. -2564.05 -1147.98 -93.00
Tangible Net Worth Rs.Crs. 3140.88 4738.37 Not Available
Total Debt / Tangible Net Worth Times 3.64 2.07 Not Available
Current Ratio Times 1.01 1.03 Not Available
KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.


STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating AgencyStatus and Reason for Non-CooparationDate of Press Release
CAREReliance Infra has been listed under the non-cooperation issuer category by CARE Ratings Limited due to inadequate information provided by the company and non-payment of surveillance fees by the company.26Feb2024

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 2.63
BWR D
(Reaffirmation)
10Feb2023
BWR D
(ISSUER NOT COOPERATING* /Reaffirmation)
05Jan2022
BWR D
(Reaffirmation)
NA
NA
0.00
NA
02Aug2023
BWR D
(removal from ISSUER NOT COOPERATING* category/Reaffirmed)
NA
NA
NA
NA
Grand Total 2.63 (Rupees Two Crores and Sixty Three lakhs Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Shreekant Digambar Kadere

Senior Rating Analyst shreekant.dk@brickworkratings.com

Niraj Kumar Rathi

Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Reliance Infrastructure Ltd
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.) Complexity of the Instrument
1 Canara Bank Term LoanSanctioned 2.63 _ 2.63 Simple##
Total 2.63 0.00 2.63
TOTAL (Rupees Two Crores and Sixty Three lakhs Only)

## 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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
BSES Kerala Power Limited 100 Full Subsidiary
DS Toll Road Limited 100 Full Subsidiary
GF Toll Road Private Limited 100 Full Subsidiary
HK Toll Road Private Limited 100 Full Subsidiary
Jai Ammunition Limited 100 Full Subsidiary
Jai Armaments Limited 100 Full Subsidiary
JR Toll Road Private Limited 100 Full Subsidiary
KM Toll Road Private Limited 100 Full Subsidiary
Neom Smart Technology Private Limited 100 Full Subsidiary
NK Toll Road Limited 100 Full Subsidiary
North Karanpura Transmission Company Limited 100 Full Subsidiary
PS Toll Road Private Limited 100 Full Subsidiary
Reliance Aero Systems Private Limited (Applied for Strike Off) 100 Full Subsidiary
Reliance Aerostructure Limited 100 Full Subsidiary
Reliance Cement Corporation Private Limited (Applied for Strike Off) 100 Full Subsidiary
Reliance Cruise and Terminals Limited (Applied for Strike Off) 100 Full Subsidiary
Reliance Defence and Aerospace Private Limited (Applied for Strike Off) 100 Full Subsidiary
Reliance Defence Infrastructure Limited 100 Full Subsidiary
Reliance Defence Limited 100 Full Subsidiary
Reliance Defence Systems and Tech Limited 100 Full Subsidiary
Reliance Defence Systems Private Limited 100 Full Subsidiary
Reliance Defence Technologies Private Limited 100 Full Subsidiary
Reliance E-Generation and Management Private Limited (Applied for Strike Off) 100 Full Subsidiary
Reliance Energy Limited 100 Full Subsidiary
Reliance Energy Trading Limited 100 Full Subsidiary
Reliance Global Limited 100 Full Subsidiary
Reliance Helicopters Limited 100 Full Subsidiary
Reliance Land Systems Limited 100 Full Subsidiary
Reliance Naval Systems Limited 100 Full Subsidiary
Reliance Power Transmission Limited 100 Full Subsidiary
Reliance Property Developers Private Limited (Applied for Strike Off) 100 Full Subsidiary
Reliance Propulsion Systems Limited 100 Full Subsidiary
Reliance Smart Cities Limited (Applied for Strike Off) 100 Full Subsidiary
Reliance Unmanned Systems Limited 100 Full Subsidiary
Reliance Velocity Limited 100 Full Subsidiary
SU Toll Road Private Limited 100 Full Subsidiary
Talcher II Transmission Company Limited 100 Full Subsidiary
TD Toll Road Private Limited 100 Full Subsidiary
TK Toll Road Private Limited 100 Full Subsidiary
Delhi Airport Metro Express Private Limited 99.95 Full Subsidiary
CBD Tower Private Limited 89 Full Subsidiary
Baramati Airport Limited 74.24 Full Subsidiary
Latur Airport Limited 74.24 Full Subsidiary
Nanded Airport Limited 74.24 Full Subsidiary
Osmanabad Airport Limited 74.24 Full Subsidiary
Yavatmal Airport Limited 74.24 Full Subsidiary
Mumbai Metro One Private Limited 74 Full Subsidiary
Reliance SED Limited 74 Full Subsidiary
Reliance Airport Developers Limited 65.21 Full Subsidiary
BSES Rajdhani Power Limited 51 Full Subsidiary
BSES Yamuna Power Limited 51 Full Subsidiary
Dassault Reliance Aerospace Limited 51 Full Subsidiary
Thales Reliance Defence Systems Limited 51 Full Subsidiary
Gullfoss Enterprises Private Limited 50.01 Full Associate
RPL Photon Private Limited (Applied for Strike Off) 50 Full Associate
RPL Sun Power Private Limited (Applied for Strike Off) 50 Full Associate
RPL Sun Technique Private Limited (Applied for Strike Off) 50 Full Associate
Mumbai Metro Transport Private Limited 48 Full Subsidiary
Tamil Nadu Industries Captive Power Company Limited 33.7 Full Subsidiary
Metro One Operation Private Limited 30 Full Associate
Reliance Neo Energies Private Limited (Formerly Reliance Geo Thermal) 25 Full Associate
Reliance Power Limited 23.15 Full Associate
Utility Powertech Limited 19.8 Full Joint Venture

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