RATING RATIONALE
31Aug2021

Woodhill Infrastructure Ltd

Brickwork Ratings Revises the long term rating while Reaffirming the short-term ratings for the Bank Loan Facilities of Rs. 127.42 Crs. of Woodhill Infrastructure Ltd

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(18 May 2020)
Present
Fund Based 54.70 40.42 Long Term BWR BB+/Stable
#Reaffirmation
BWR BB /Stable
Downgrade
Non Fund Based 73.30 87.00 Short Term BWR A4+
#Reaffirmation
BWR A4 +
Reaffirmation
Grand Total 128.00 127.42 (Rupees One Hundred Twenty Seven Crores and Forty Two 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


Brickwork has downgraded the long term rating to BWR BB (Stable) and reaffirmed the short term rating to BWR A4+ of Woodhill Infrastructure Ltd (WIL). The rating downgrade is led by delay in servicing of debt, over utilization in cash credit facility and deterioration in financial profile over the years.

The ratings draw comfort from the extensive experience of the promoters, working with government entities, comfortable gearing ratio, moderate debt protection metrics, healthy order book position and improvement in financial profile in FY21. The rating is, however, constrained by risk associated with tender based business, timely execution of contracts, working capital intensive operations and continuous decline in TOI & Profitability in last four years (FY17 - FY 20).

The outlook of the company is Stable as the company has a healthy order book position.

KEY RATING DRIVERS


Credit Strengths:


Credit Risks:

RATING SENSITIVITIES

Positive: The rating may be upgraded upon improvement in liquidity and sustained improvement in overall EBITDA leading to deleveraging.

Negative: The rating outlook may be revised downward in case revenues and EBITDA of the company substantially deteriorates from current level. Rating may also be adversely affected in case of further deterioration in liquidity and coverage ratios.

LIQUIDITY INDICATORS - Stretched

The company is availing cash credit facility of Rs. 40.42 Crs from PNB, ICICI Bank and HDFC Bank. The company has WIL’s liquidity is supported by cash and equivalents of Rs. 8.89 Crs as on 31.03.2021. The average utilization of the fund-based limits was more than 90% over the 12 months ended July 2021. The cash accruals has improved from Rs.5.50 Crs in FY20 to Rs. 6.44 Crs in FY21 (Provisional) against the CPLTD of Rs. 1.16Crs. The liquidity of company is stretched as delays in servicing of interest of cash credit facility up to 30 days were confirmed by bankers.

ABOUT THE ENTITY

Woodhill Infrastructure Ltd(WIL) was incorporated in 1990 in New Delhi engaged in EPC constructor mainly engaged in construction of roads (earthwork, widening, strengthening and resurfacing of state and national highways), bridges, highways, underground works and flyovers. Company is registered as “A” class for civil works with various government departments. Currently, company has been constructing roads, bridges & highway in Odisha, Uttar Pradesh, New Delhi and Uttarakhand.

Mr. Deepak Kant Gupta, Mr. Vivek Bhati, Mr. Shiv Kumar Kasana, Mr. Siddhartha Singh, Mr. Peeyush Gupta, Mr Dinesh Kumar Sharma and Mr. Vimla Devi are the directors of company.

KEY FINANCIAL INDICATORS (Standalone)
Key Parameters Units FY 19-20
(Audited)
FY 18-19
(Audited)
Operating Revenue Rs.Crs. 160.96 192.08
EBITDA Rs.Crs. 11.34 13.92
PAT Rs.Crs. 3.02 0.22
Tangible Net Worth Rs.Crs. 127.67 124.65
Total Debt/Tangible Net Worth Times 0.50 0.57
Current Ratio Times 2.19 1.97

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2021) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 40.42
BWR BB/Stable
(Downgrade)
18May2020
BWR BB+Stable
(#Reaffirmation)
NA
NA
13Dec2018
BWR BB+ Stable
(#Initial)
Non Fund Based ST 87.00
BWR A4+
(Reaffirmation)
18May2020
BWR A4+
(#Reaffirmation)
NA
NA
13Dec2018
BWR A4+
(#Initial)
Grand Total 127.42 (Rupees One Hundred Twenty Seven Crores and Forty Two 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

Neha Wahi

Ratings Analyst Board : +91 11 2341 2232 nehawahi@brickworkratings.com

Tanu Sharma

Director - Ratings tanusharma@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Woodhill Infrastructure 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 HDFC Bank Cash CreditSanctioned 3.60 _ 3.60
2 HDFC Bank Bank GuaranteeSanctioned _ 39.00 39.00
3 ICICI Bank Cash CreditSanctioned 1.82 _ 1.82
4 ICICI Bank Bank GuaranteeSanctioned _ 23.00 23.00
5 Punjab National Bank Cash CreditSanctioned 35.00 _ 35.00
6 Punjab National Bank Bank GuaranteeSanctioned _ 25.00 25.00
Total 40.42 87.00 127.42
TOTAL (Rupees One Hundred Twenty Seven Crores and Forty Two lakhs Only)
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