Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 55.00 Crs. of Global Vectra Helicorp Ltd
ParticularsFacilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
---|---|---|---|---|---|
Previous | Present | Previous (23 Aug 2021) |
Present | ||
Fund Based | 10.00 | 10.00 | Long Term |
BWR BB+/Stable
Downgrade |
BWR BB +
/Stable Reaffirmation |
(1.00) | (0.00) | ||||
25.00 | 5.00 | Short Term |
BWR A4+
Downgrade |
BWR A4 +
Reaffirmation |
|
Non Fund Based | 35.00 | 40.00 | Short Term |
BWR A4+
Downgrade |
BWR A4 +
Reaffirmation |
Grand Total | 70.00 | 55.00 | (Rupees Fifty Five Crores Only) |
Brickwork Ratings reaffirms the rating for the Bank Loan Facilities of Rs.55.00 Crs of Global Vectra Helicorp Ltd. at BWR BB+/A4+(Stable).
The ratings continue to derive comfort from the experienced promoters and management team of GVHL, moderate networth base and gearing levels, and long-term contracts with reputed clients. However, these strengths are partially offset by the modest scale of business operations, weak debt coverage indicators and customer concentration risk.
The Stable 'Outlook' is on account of BWR's expectation that the financial risk profile of the Company will be maintained over the medium term.
KEY RATING DRIVERSCredit Strengths:
The promoters and the management of the Company have more than two decades of experience in operating helicopter leasing services business. The management team of the Company is highly qualified and has expertise in the field of aviation.
Due to moderate networth base of Rs.106.35 Crs as on March 31, 2022 as against Rs.113.81 Crs as on March 31, 2021, the Total gearing of GVHL has remained comfortable at 0.52x as on March 31, 2022 as against 0.46x as on March 31, 2021.
GVHL has an established relationship with customers. The Company has long term contracts of 3-5 years with reputed clients like ONGC, Cairn India Ltd. and some state governments which reduces counter-party risk for the company. The contracts are usually renewed towards the end of their tenure.
In FY22, GVHL received nearly 56% of its revenue from ONGC which exposes its business to customer concentration risk. The revenue of GVHL had declined significantly in FY21 due to COVID outbreak, as ONGC had reduced its offshore employee trips by increasing shift times, in order to reduce the frequency of exposure cycles to pandemic. The Company remains prone to this risk due to increasing COVID cases across the country.
In FY22, TOI of the Company had increased to Rs.373.42 Crs as against Rs.333.74 Crs in FY21. In Q1FY23, the TOI of the Company stood at Rs.107.23 Crs as against Rs.88.40 Crs in Q1FY22.
The Company had reported an operating loss of Rs.1.95 Crs in FY22 as against an operating loss of Rs.19.80 Crs in FY21. In Q1FY23, due to an increase in helicopter maintenance expenses the operating losses increased to Rs.13.27 Crs as against a loss of 4.07 Crs in Q1FY22.
Due to operating losses, the ISCR of the Company has remained negative in FY22.
BWR has principally relied upon standalone audited results up to FY22, Q1FY23 unaudited result, projections upto FY24, publicly available information and clarifications/information provided by the management.
The Company has adopted the IND AS116 for operating leases from FY20. However, for the analytical approach, the financials are adjusted as per IND AS17.
RATING SENSITIVITIES
Positive: If the Company manages to improve its revenue, profitability, debt coverage indicators and efficiently manage its working capital, it could result in a positive rating action.
Negative: Deterioration in the scale of operation, key financial metrics, and increase in losses would be negative for ratings.
LIQUIDITY INDICATORS - Adequate
The liquidity position of the Company is adequate as its adjusted current ratio as on March 31, 2022, stood low at 1.67x. The Company had Cash & bank balance of Rs.7.00 Crs as on 31 July 2022 and its CC utilization for the last 11 months period is around 56%. The Company is expected to generate Cash accruals of Rs.Rs.35.00 Crs and Rs.41.00 Crs against the principal repayments of Rs.18.73 Crs and Rs.22.83 Crs in FY23 & FY24 respectively.
ABOUT THE ENTITYGlobal Vectra Helicorp Limited (GVHL) is a Mumbai, Maharashtra based company engaged in providing chartered helicopter services with a fleet of 8 owned and 18 leased helicoptors. (16 on operating lease and 2 on finance lease). GVHL offers offshore transportation services to the Oil and gas sector. The company has operations in both East & West coasts serving blue chip companies such as ONGC, Reliance Petroleum, British Gas, Gujarat State Petroleum Corporation etc.
KEY FINANCIAL INDICATORS (Standalone)Key Parameters | Units |
FY 21-22 (Audited) |
FY 20-21 (Audited) |
---|---|---|---|
Operating Revenue | Rs.Crs. | 332.07 | 295.33 |
EBITDA | Rs.Crs. | 45.58 | 24.81 |
PAT | Rs.Crs. | -5.44 | -29.28 |
Tangible Net Worth | Rs.Crs. | 106.35 | 113.81 |
Total Debt/TNW | Times | 1.90 | 1.93 |
Current Ratio | Times | 0.58 | 0.49 |
Facilities | Current Rating (2022) | 2021 | 2020 | 2019 | |||||
---|---|---|---|---|---|---|---|---|---|
Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
Fund Based | LT | 10.00 |
BWR BB+/Stable
(Reaffirmation) |
23Aug2021 |
BWR BB+Stable
(Downgrade) |
NA |
NA
|
17Jul2019 |
BWR BBBStable
(Reaffirmation) |
0.00 |
NA
|
13Mar2021 |
BWR BBB-Negative
(Downgrade) |
NA |
NA
|
NA |
NA
|
||
Fund Based | ST | 5.00 |
BWR A4+
(Reaffirmation) |
23Aug2021 |
BWR A4+
(Downgrade) |
NA |
NA
|
NA |
NA
|
0.00 |
NA
|
13Mar2021 |
BWR A3
(Downgrade) |
NA |
NA
|
NA |
NA
|
||
Non Fund Based | ST | 40.00 |
BWR A4+
(Reaffirmation) |
23Aug2021 |
BWR A4+
(Downgrade) |
NA |
NA
|
17Jul2019 |
BWR A3+
(Reaffirmation) |
0.00 |
NA
|
13Mar2021 |
BWR A3
(Downgrade) |
NA |
NA
|
NA |
NA
|
||
Grand Total | 55.00 | (Rupees Fifty Five Crores 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.
Hyperlink/Reference to applicable CriteriaAnalytical Contacts | |
---|---|
Prashant Sahadev Mondkar Ratings Analyst Board : +91 22 2831 1426, +91 22 2831 1439 prashant.sm@brickworkratings.com |
Chintan Dilip Lakhani Director- Ratings chintan.l@brickworkratings.com |
1-860-425-2742 | media@brickworkratings.com |
SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
---|---|---|---|---|---|---|
1 | IndusInd Bank | Cash CreditSanctioned | 10.00 | _ | 10.00 | |
Sub-Limit (Overdraft) Sanctioned | (0.00) | |||||
2 | IndusInd Bank | Bill Discounted (BD)Sanctioned | _ | 5.00 | 5.00 | |
3 | IndusInd Bank | Bank GuaranteeSanctioned | _ | 40.00 | 40.00 | |
4 | Standard Chartered Bank | Foreign Bill DiscountingSanctioned | _ | _ | 0.00 | |
Total | 10.00 | 45.00 | 55.00 | |||
TOTAL (Rupees Fifty Five Crores Only) |
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