RATING RATIONALE
13Jun2022

Rodium Realty Ltd

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 20.77 Crs. of Rodium Realty Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(04 Mar 2021)
Present
Fund Based 25.00 20.77 Long Term BWR BB+/Stable
Reaffirmation
BWR BB /Stable
Downgrade
Grand Total 25.00 20.77 (Rupees Twenty Crores and Seventy Seven 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
Note: For the last rating, the term loan sanctioned was Rs. 25.00 Cr (Rs. 15 Cr & Rs. 10 Cr). As per the updated sanction letter for the Rs. 15.00 Cr loan, it was capped at Rs. 4.85 Cr and the balance undisbursed limit of Rs. 10.15 Crs stands canceled and the outstanding amount is Rs. 0.77 Cr. This year there are two-term loans sanctioned for an amount of Rs. 10 Cr each.


RATING ACTION / OUTLOOK

BWR has downgraded the long-term rating to BWR BB/Stable for the bank loan facilities of Rodium Realty Ltd ("RRL" or "The Company"). BWR has essentially relied upon the company’s audited financial results up to FY22, projected cash flows as well as publicly available information, and the information/ clarifications provided by the company.

The downgrade in rating factors in the low traction in the selling of the new units for the past 12 months ending March 22, susceptibility of the cash inflows from the customer advances & delays in the ongoing project, and the competition faced by the company from other players operating in the market. The rating is further constrained by the shortfall in the envisaged performance of the company wherein the cashflow projections Shared by the company during the previous rating review have not been met by a substantial margin.

The rating continues to factor in the experienced management and their understanding of the industry dynamics and the favorable location of the ongoing project.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Consolidated

For arriving at its ratings, BWR has assessed the consolidated financials of Rodium Realty Ltd (RRL) and has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale)

RATING SENSITIVITIES

The ability of the company’s ability to sell the inventory, timely completion of ongoing projects within the estimated cost, and ability to service debt would be the key rating sensitivities of the company

Positive: The rating may be upgraded in case there is an increase in bookings and collections resulting in a considerable increase in cashflows and a reduction in debt on a sustainable basis.

Negative: The rating may be downgraded if there is lower than expected booking and consequent delay in cash flows, thus impacting liquidity and any simultaneous launch of new projects increasing the overall projects related risks.

LIQUIDITY INDICATORS - Stretched

The liquidity profile of the company is stretched.

The cash and cash equivalents stood at Rs. 1.49 Cr whereas the current ratio stood at 1.31x as of March 22. The OD average utilization for the last 6 months stands high at 99.63%.

The liquidity is stretched given there has been low traction in the selling of the new units for the past 12 months ending March 22. In addition to this, going forward, a significant amount of the cash flow is expected to be received from selling the unsold units.

ABOUT THE ENTITY

Rodium Realty Ltd. (RRL), a listed public limited company, is engaged in real estate development projects in Mumbai, Maharashtra in both the residential and commercial spaces with its registered office situated in the same city. Established in 1993 as Vishal Cotspin Ltd in 1993, the company was renamed RRL and taken over by Mr. Deepak Chheda, Mr. Shailesh Shah, Mr. Rohit Dedhia, and Mr. Harish Nisar in November 2009.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 12.89 16.00
EBITDA Rs.Crs. -0.52 -0.92
PAT Rs.Crs. -0.37 -2.75
Tangible Net Worth Rs.Crs. 12.85 13.33
Total Debt/Tangible Net Worth Times 6.77 5.11
Current Ratio Times 1.27 1.30
KEY FINANCIAL INDICATORS (Consolidated)
Key Parameters Units FY 21-22
(Audited)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 12.89 16.00
EBITDA Rs.Crs. -0.53 -0.93
PAT Rs.Crs. -0.67 -2.80
Tangible Net Worth Rs.Crs. 13.10 13.58
Total Debt/Tangible Net Worth Times 7.00 5.02
Current Ratio Times 1.31 1.33
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

NA

ANY OTHER INFORMATION

Nil.

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 20.77
BWR BB/Stable
(Downgrade)
04Mar2021
BWR BB+Stable
(Reaffirmation )
NA
NA
11Oct2019
BWR BB+Stable
(Assignment)
Grand Total 20.77 (Rupees Twenty Crores and Seventy Seven 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

Akash Puran Singh Patwal

Ratings Analyst akashpuran.p@brickworkratings.com

Sushil Kumar Chitkara

Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 sushilkumar.c@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Rodium Realty 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 Capri Global Capital Limited Term LoanSanctioned 20.77 _ 20.77
Total 20.77 0.00 20.77
TOTAL (Rupees Twenty Crores and Seventy Seven lakhs Only)
ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN Particulars
Not Applicable (NA) 0.00 0 NA

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
Rodium Housing LLP 99.95 Full Consolidation Subsidiary
81 Estates LLP 75 Full Consolidation Subsidiary
Contour Developers LLP 80 Full Consolidation Subsidiary
Readystage LLP 75 Full Consolidation Subsidiary
Fluid Realty LLP 75 Full Consolidation Subsidiary
Xperia Realty LLP 99 Full Consolidation Subsidiary

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