AMPL Cleantech Pvt. Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 281.80 Crs. of AMPL Cleantech Pvt. Ltd.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (21 Dec 2020)	Present
Fund Based	300.00	281.80	Long Term	BWR BBB+/Stable Assignment	BWR BBB + /Stable Reaffirmation
Grand Total	300.00	281.80	(Rupees Two Hundred Eighty One Crores and Eighty 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

The rating has positively factored in the long track record of Kolkata-based Atha Group; its experience of operating solar projects in different parts of the country; long-term Power Purchase Agreements (PPA) of 25 years between AMPL Cleantech Pvt Ltd (AMPL or the company) & its subsidiaries with various state distribution companies and central govt. entities like Madhya Pradesh Power Management Company Limited (MPPMCL) , Telangana State Southern Power Distribution Company Limited (TSSPDCL) Solar Energy Corporation of India (SECI), NTPC Vidyut Vyapar Nigam Limited(NVVNL) etc.

However, the rating is constrained by risk of delayed payments from counterparties ; inherent vulnerability of solar power projects to risks emanating from climatic conditions, technological factors and regulatory changes among others.

Brickwork Ratings (BWR) expects the business risk profile will be maintained over the medium term.The outlook may be revised to positive if the profitability improves, debt level comes down along with improvement in debt servicing indicators. The outlook may be revised to negative if the CUF declines in one or more plants, leading to lower-than-expected revenues and higher than anticipated delays in the realization of receipts from the counter parties.

KEY RATING DRIVERS

Credit Strengths:

Long business experience of Atha Group, experience in operating solar projects: :
Atha Group, based out of Kolkata, has over six decades of experience in the mining & minerals industry. Over the years, the group has diversified into power & steel, calcined petroleum coke, renewable energy and other areas. Promoters Kishore Kumar Atha and Dilip Kumar Atha have nearly four decades of experience in handling various businesses of the group. The group, through its renewable energy arm AMPL Cleantech Pvt Ltd, has invested heavily in the renewable energy sector and has eleven solar power projects in six Indian states (Karnataka, Maharashtra, Rajasthan, Madhya Pradesh, Telangana, Tamil Nadu), with a total of 355 MW capacity
Long-term off-take agreement in the form of PPA signed with counterparties: :
The company has long term PPAs for all the solar projects mitigating offtake risk. AMPL on a standalone basis operates 40 MW capacity in Madhya Pradesh with Madhya Pradesh Power Management Company Limited (MPPMCL) as the PPA counterparty on behalf of Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited(MPPKVVCL) and 15 MW capacity in Telangana with Telangana State Southern Power Distribution Company Limited (TSSPDCL) as the PPA counterparty.

AMPL has a consolidated capacity of 355 MW including 55MW on a standalone basis in the company and the remaining capacity through its subsidiaries with diverse counterparties including SECI, NVVNL, MESCOM, BESCOM, TANGEDCO, etc. across six states.
Moderate financial risk profile: :
The company has achieved an average capacity utilization factor (CUF) of 20.11% for the last 12 months which is in line with the projected CUF for FY22.The ISCR and DSCR for FY21 were 1.52x and 1.32x respectively showcasing moderate debt metrics to fulfill repayment obligations in a timely manner. The current ratio for FY21 is 3.54x which indicates adequacy of cash to pay out short term obligations.

Credit Risks:

High Counterparty risk: :
The average time realization of payment from Southern Power Distribution Company of Telangana Limited (TSSPDCL) is 330 Days as TSSPDCL is constrained by subdued operational performance, weak regulatory environment, delays in getting tariff subsidy from the state government and unfavorable capital structure with stretched liquidity position. However, there is adequate liquidity available with the entity due to ~70% of its revenues coming from MPPMCL where the dues are realized withing 60 days along with strong group support.
Climatic and technological risk: :
Unexpected climatic conditions affecting the solar irradiation level, temperature etc. can have an effect on generation efficiency. Similarly, PV module degradation, aging, efficiency of inverters and transmission systems can affect the overall efficiency of the solar plants.

ANALYTICAL APPROACH - Consolidated

BWR has considered both standalone and consolidated financials, projected cash flow , and operating performance of the solar projects to arrive at the rating. (Hyperlink to the applicable criteria has been provided below).

RATING SENSITIVITIES

Going forward, the company’s ability to improve the scale of operations, achieve a higher CUF from the current levels in a consistent manner, maintain debt servicing indicators, managing the delay in the realization of receipts from the sale of power for long periods will be the key rating sensitivities.

Upward: Ability to improve profitability, reduce debt level along with improvement in debt servicing indicators.

Downward: Decline in Capacity Utilization Factor (CUF), leading to lower-than-expected revenue ; Delay in the realisation of receipts from the counterparties; natural or other factors affecting power generation adversely.

LIQUIDITY INDICATORS - Adequate

In FY21 on a standalone basis, the company had net cash accruals of Rs.26.81Cr against a repayment obligation of Rs.18.25 Cr (CPLTD). In Addition to this, the cash and cash equivalents and current Investments is Rs.39.63Cr, and Rs.12.59Cr respectively which provides liquidity comfort to the company. The DSCR for the loan period works out to 1.32x indicating the adequacy of cash flows to service debt obligations. Further, the average CC utilisation is 13.58% for the last 09 months and the estimated net cash accruals for FY22 is Rs.22.70Cr against the repayment obligation Rs.18.25 Cr (CPLTD) in FY22. Overall, the liquidity position of the company is adequate to service the debt obligations.

In FY21 on a consolidated basis, the company had net cash accruals of Rs.72.74 Cr against the repayment obligation of Rs.57.00Crs(CPLTD). In addition to this, the cash and cash equivalents of Rs.97.05Cr, and Current Investments of Rs.19.64 Cr as on FY21 provides liquidity comfort to the company. The DSCR for FY21 is 1.15x which indicates the adequacy of cash flows to service debt obligations. Overall, the liquidity position of the company is adequate to service the debt obligations on a consolidated basis.

ABOUT THE ENTITY

AMPL Cleantech Pvt. Ltd. (AMPL) was incorporated in 2006, is the renewable energy arm of Kolkata based Atha Group, has a total solar energy portfolio of 355 MW spread across India. AMPL on a standalone basis acquired 4 operational solar plants of total 55MW capacity in Madhya Pradesh and Telangana from its group company Narbheram Vishram under slump saleagreement in March’ 2018, other 300 MW of projects are under various subsidiaries and an associate.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 20-21 (Audited)	FY 19-20 (Audited)
Operating Revenue	Rs.Crs.	67.99	510.56
EBITDA	Rs.Crs.	47.91	56.78
PAT	Rs.Crs.	3.59	9.62
Tangible Net Worth	Rs.Crs.	138.07	134.47
Total Debt/Tangible Net Worth	Times	5.07	7.40
Current Ratio	Times	3.54	1.18

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2022)			2021		2020		2019
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	281.80	BWR BBB+/Stable (Reaffirmation)	NA	NA	21Dec2020	BWR BBB+Stable (Assignment)	NA	NA
Grand Total		281.80	(Rupees Two Hundred Eighty One Crores and Eighty lakhs 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
Nikhil Jaideo Meshram Ratings Analyst nikhil.jm@brickworkratings.com	Vipula Sharma Director - Ratings Board : +91 80 4040 9940 vipula.s@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com

AMPL Cleantech Pvt. 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.)
1	Indian Renewable Energy Development Agency Limited (IREDA)	Term Loan	261.80	_	261.80
2	Yes Bank	Cash Credit	20.00	_	20.00
Total			281.80	0.00	281.80
TOTAL (Rupees Two Hundred Eighty One Crores and Eighty lakhs Only)

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