RATING RATIONALE
15Jul2022

Shri Dhanalakshmi Green Energy India Pvt. Ltd.

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 35.56 Crs. of Shri Dhanalakshmi Green Energy India Pvt. Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(17 Aug 2021)
Present
Fund Based 19.45 35.56 Long Term BWR BB- /Stable
Upgrade
BWR BB - /Stable
Reaffirmation
Grand Total 19.45 35.56 (Rupees Thirty Five Crores and Fifty Six 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 reaffirmation of the rating factors in the extensive experience of promoters in textile and wind energy businesses, established operational track record and locational advantage of the plant  and improvement in revenues and profitability  from Rs.1.85 Crs. in FY21 to Rs. 7.36 Crs in  FY22 (Provisional). The ratings, however, continue to remain constrained by the renewal risk for the power purchase agreements, high counterparty risk, implementation risk for the proposed project and susceptibility of the company’s performance to adverse climatic conditions & technological changes.

The outlook has been kept as stable as there is a  low likelihood of a rating change in the medium term. BWR expects that the company’s performance is likely to be maintained in the medium term with stable revenues and cash generation.

KEY RATING DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone financials of the company. BWR has applied its rating methodology as detailed in the Rating Criteria.

RATING SENSITIVITIES

Going forward the ability of the company to maintain PLF of the plant, timely realization of payments from the off-takers, further improvement in the financial risk profile by generating sufficient net profits as well as cash profits shall remain key rating sensitivities.

Positive: The rating will be upgraded in case the wind power capacity exhibits a healthy increase in generation level along with a reduction in the receivables from the off-takers to less than 90 days on a sustainable basis and timely renewal of the PPAs at a remunerative tariff is a key monitorable.

Negative: Ligations or any major deterioration in the tariffs or generation as well as receivables realization which can be detrimental for the company’s liquidity as well as debt servicing ability are  negative rating sensitivities.

LIQUIDITY INDICATORS - Adequate

The company is generating adequate cash accruals to meet its debt obligations. The company has generated cash accruals of Rs. 8..81 Crs. as on 31 March 2022 as against the debt obligation of Rs. 7.76 Crs. for FY22 . The average working capital facility utilisation  for the period December 2021 to 15 June 2022 is 82.55%. BWR expects that the company would be generating adequate cash accruals to meet the debt obligations in the medium term.

ABOUT THE ENTITY

Shri Dhanalakshmi Green Energy India Pvt. Ltd (SDGEIPL) was incorporated in 2013 at Tirunelveli, Tamil Nadu. The Company is operating nine windmills with a total capacity of 10.75 MW in Tirunelveli, Tamil Nadu. The company is supplying power to various captive companies located in and around Coimbatore. SDGEIPL is promoted by Mr. C. Natrajan and Mrs. N. Leelavathy (W/o Mr. C Natrajan)

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 21-22
(Provisional)
FY 20-21
(Audited)
Operating Revenue Rs.Crs. 31.00 9.58
EBITDA Rs.Crs. 10.23 5.99
PAT Rs.Crs. 7.36 1.85
Tangible Net Worth Rs.Crs. 17.93 10.56
Total Debt/TNW Times 1.97 2.05
Current Ratio Times 1.31 1.11
KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for bank loan facilities 


STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Ratings for Shri Dhanalakshmi Green Energy India Private Limited have been withdrawn by CARE Ratings vide rationale dated 08 October 2021 with rating reaffirmed at CARE D; ISSUER NOT COOPERATING* for the bank loan facilities.

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 35.56
BWR BB-/Stable
(Reaffirmation)
17Aug2021
BWR BB- Stable
(Upgrade)
26Jun2020
BWR B+ Stable
(Reaffirmation)
01Aug2019
BWR B+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
Grand Total 35.56 (Rupees Thirty Five Crores and Fifty Six 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

Mita Ghanshyam Gupta

Ratings Analyst mitagupta.g@brickworkratings.com

Vipula Sharma

Director - Ratings Board : +91 80 4040 9940 vipula.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Shri Dhanalakshmi Green Energy India 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 Canara Bank Term LoanOut-standing 9.25 _ 9.25
2 Canara Bank Term LoanOut-standing 20.40 _ 20.40
3 Canara Bank Overdraft against Book Debts (ODBD)Sanctioned 2.00 _ 2.00
4 Canara Bank GECLOut-standing 1.74 _ 1.74
5 Canara Bank GECLOut-standing 2.17 _ 2.17
Total 35.56 0.00 35.56
TOTAL (Rupees Thirty Five Crores and Fifty Six lakhs Only)
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