AMPL Cleantech Pvt. Ltd.

Brickwork Ratings reaffirms the rating for the bank loan facility of Rs. 246.93 Crs. of AMPL Cleantech Pvt. Ltd.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (09 Feb 2022)	Present
Fund Based	281.80	246.93	Long Term	BWR BBB+ /Stable Reaffirmation	BWR BBB + /Stable Reaffirmation
Grand Total	281.80	246.93	(Rupees Two Hundred Forty Six Crores and Ninety 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
Note: The financials indicated for FY23 are as provided by the company management and dated till November 15, 2023. The total debt considered in the historic standalone and consolidated figures and metrics below also include unsecured compulsorily convertible debentures (CCDs) of a value of Rs.150.0 Crs.

RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) reaffirms the ratings for the bank loan facility of Rs. 246.93 Crs of AMPL Cleantech Private Limited (ACPL or the company). The ratings factor in the stable CUF levels of the company's four plants aggregating to 55 MW, comfortable debt coverage metrics which BWR expects to be continued over the near term, adequacy of expected cash accruals in FY23, long average balance lives of all four PPAs with Madhya Pradesh Power Management Corporation Limited (MPPMCL) and Southern Power Distribution Company of Telengana Limited (SPDTCL) at predetermined tariffs for a period of 25 years, escrowing of revenues and the existence of a DSRA reserve. BWR notes the recent change in management following its acquisition by a platform floated by an international infrastructure investor with a long operational history of managing renewable energy assets in emerging market economies.

The ratings are however constrained by the high but improving leverage levels of the company, potential irradiation deficiency led cash flow risks and credit quality slippage risks attributable to the offtakers.

The outlook is 'Stable' in considering the prevailing and expected CUF levels being generated by the plant and the long average balance life of all four PPAs with MPPMCL and SPDTCL at pre-determined tariffs for a period of 25 years. Business risk is expected to remain unchanged over the medium term and is supported by recent governmental initiatives to increase the share over time of renewables-generated power procured by power purchasers in India.

KEY RATING DRIVERS

Credit Strengths:

Long term revenue visibility given balance life of the PPA :
On average, each of the company's four PPAs for its collective standalone operational capacity of 55 MW has a balance life of 19-20 years out of a total PPA length of 25 years. The balance lengths of the PPAs are greater than the balance term loan tenure and this is expected to mitigate any emergent refinancing risk.
Company expected to benefit from specialist management following recent acquisition by BluPine Energy sponsored by the Actis Group :
The company has recently been acquired by BluPine Energy sponsored by the Actis Group - an international infrastructure investor which has a history of investments in renewables-led projects. The company is expected to benefit from the experience and expertise which the new management brings in. Also, as per discussions with the new management, the technical staff operating the plant have been retained and hence operational continuity is expected to be maintained over the medium term.
Structured payment mechanism and existence of DSRA :
Cash flows for debt servicing are routed through an escrow account and additionally there exists additional debt servicing protections in the form of a DSRA balance of Rs. 22.48 Crs.
Stabilised CUF levels and year-to-date performance :
The average CUF levels across all plants have been above 19% in FY22 and in the first seven months of FY23. The company's CUF levels are expected to prevail over the medium term. Given that the company's revenues are directly proportional to its CUF levels, the continuation of current levels over the medium term lends confidence that the company's revenues would meet expected annual levels.

Credit Risks:

Moderate financial risk profile: :
The company’s historic standalone leverage levels were moderate as reflected in its CCD-adjusted total debt to tangible net worth which in FY22 was at 3.4x improving from a 4.0x level as of FY21A and ~6.3x level as of FY20A. The company's consolidated leverage levels were however greater mainly due to losses in the company's other subsidiaries which led to its consolidated tangible net worth being lesser than its standalone tangible net worth, However, the company's leverage levels are expected to improve in the medium term as the company is not expected to raise any fresh debt.
Counterparty credit quality risks :
~72% of the company's revenues come in from MPPMCL while the balance ~28% comes from SPDCTL. Although SPDCTL has a weaker credit profile than MPPMCL, the overall counterparty risk is mitigated considering that bulk of the company's revenue comes from the stronger counterparty.
Inherent Risks associated with variance in solar irradiation :
The rating is constrained on account of the inherent generation risks in a solar-powered project such as levels of solar irradiation, climatic conditions and overall operational efficiency of the plant. This risk, however, is mitigated to an extent by strong and stabilized CUF levels which are comfortably above the PPA-set thresholds.

ANALYTICAL APPROACH - Consolidated

BWR has adopted a consolidated approach to AMPL and special purpose entities (SPVs). BWR has principally relied on the standalone and consolidated audited financials up to FY2022, standalone management financials till November 2022, projections up to FY24, publicly available information and clarifications provided by the management for arriving at the rating of the fund-based limit of the company.

RATING SENSITIVITIES

Going forward, key rating sensitivities would include variations in CUF levels, changes in the company's profitability, leverage and debt coverage indicators and changes in the company's receivables position.

Upward: Improvement in profitability and leverage levels both on a standalone and consolidated basis and substantial improvement in revenue receipts.

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

LIQUIDITY INDICATORS - Adequate

The company is expected to have cash accruals in the range of Rs. 22.0 - Rs. 23.0 Crs for FY23 as against a payable current maturity of term loan of Rs. 20.61 Crs. Additionally, the company has a DSRA balance of Rs. 22.48 Crs in the form of term deposits which is expected to cover the principal and interest service requirements for two quarters. According to the company, as on November 15, 2022 the company had Rs 0.86 Crs as accessible cash in bank accounts and term deposits of Rs. 28.2 Crs., inclusive of the debt service reserve balance.

ABOUT THE ENTITY

ACPL was incorporated in 2006. The former renewable energy arm of the Kolkata based Atha Group and currently owned by BluPine Energy (a platform company of the Actis group), has a total solar energy portfolio of 355 MW spread across India. AMPL on a standalone basis had acquired four operational solar plants aggregating to 55 MW of capacity in Madhya Pradesh and Telangana from Narbheram Vishram (a partnership firm of the former owners - the Atha group) under a slump sales agreement in March 2018. The projects representing the remaining 300 MW of capacity are under various subsidiaries and an associate company.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 21-22 (Audited)	FY 20-21 (Audited)	FY 22-23 (Provisional)
Operating Revenue	Rs.Crs.	57.20	67.99	33.59
EBITDA	Rs.Crs.	44.34	47.91	25.07
PAT	Rs.Crs.	2.34	3.59	-0.90
Tangible Net Worth	Rs.Crs.	140.42	138.07	Not Available
Total Debt/TNW	Times	4.50	5.07	Not Available
Current Ratio	Times	3.65	3.54	Not Available

KEY FINANCIAL INDICATORS (Consolidated)

Key Parameters	Units	FY 21-22 (Audited)	FY 20-21 (Audited)
Operating Revenue	Rs.Crs.	200.39	200.46
EBITDA	Rs.Crs.	171.85	167.60
PAT	Rs.Crs.	9.37	-2.62
Tangible Net Worth	Rs.Crs.	55.83	46.45
Total Debt/TNW	Times	24.42	30.98
Current Ratio	Times	1.98	1.94

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

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

Facilities	Current Rating (2022)			2022 (History)		2021		2020		2019
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	246.93	BWR BBB+/Stable (Reaffirmation)	09Feb2022	BWR BBB+ Stable (Reaffirmation)	NA	NA	21Dec2020	BWR BBB+ Stable (Assignment)	NA	NA
Grand Total		246.93	(Rupees Two Hundred Forty Six Crores and Ninety Three 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
Sourav Sen Ratings Analyst souravsen@brickworkratings.com	Chintan Dilip Lakhani Director- Ratings chintan.l@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	246.93	_	246.93
2	Yes Bank	Cash Credit	_	_	0.00
Total			246.93	0.00	246.93
TOTAL (Rupees Two Hundred Forty Six Crores and Ninety Three lakhs Only)

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
NVR Infrastructure and Services Pvt Ltd	100	Full	Similar line of business
Celestial Solar Solutions Pvt Ltd	100	Full	Similar line of Business
RDA Energy Pvt Ltd	100	Full	SImilar lIne of Business
NVR Mahasolar Pvt Ltd	100	Full	Similar line of Business
NVR Renew Pvt Ltd	100	Full	Similar line of Business
NVR Energy Pvt Ltd	51	Full	Similar line of Business

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