Shri Jagannath Prasad Ganeshi Lal Bajaj Charitable Trust Samiti

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs. 54.28 Crs. of Shri Jagannath Prasad Ganeshi Lal Bajaj Charitable Trust Samiti, with Revision in the outlook from Stable to Positive

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (11 Jun 2021)	Present
Fund Based	68.62	54.28	Long Term	BWR BBB+ /Stable Reaffirmation	BWR BBB + /Positive Reaffirmation and change in Outlook
Grand Total	68.62	54.28	(Rupees Fifty Four Crores and Twenty Eight 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 Ratings (BWR) reaffirms the ratings for the bank loan facilities of Rs. 54.28 crs of Shri Jagannath Prasad Ganeshi Lal Bajaj Charitable Trust Samiti (SJPGLBCT or the Trust), with revision in Outlook from Stable to Positive. The reaffirmation continues to factor in improvement in operations in FY22 (Provisional), improvement in the profitability margins and overall stable solvency position during the period. The rating continues to derive strength from an experienced management team and adequate corpus fund of Rs. 326.36 Cr as on 31 March, 2022. The rating is, however, constrained by the inherent challenges such as regulatory risk and geographical concentration with intense competition from other educational institutes.

Outlook: Positive

The ‘Positive’ outlook indicates a likelihood of further improvement in scale of operations and financial risk profile of the Trust and consequent improvement in the credit risk profile in upcoming years. . Total Operating Income has improved from Rs. 146.99 crs in FY21 (aud.) to Rs. 196.42 crs in FY22 (provisional). Operating profits have improved from Rs. 35.68 crs in FY21 (aud.) to Rs. 53 crs in FY22 (prov.).

KEY RATING DRIVERS

Credit Strengths:

Experienced Management & Long Track Record for the University :
Shri Jagannath Prasad Ganeshi Lal Bajaj Charitable Trust Samiti (SJPGCT), incorporated under the Societies Registration Act, 1860, was founded by Mr. Narayan Das Agarwal in December 1991. The trustees of the trust have more than two decades of experience in running the educational institutes under various courses. Further, Mr. Phalguni Gupta is the Vice Chancellor/ Principal of the University. He completed his Phd from IIT Khargpur in 1986 and has more than 3 decades of experience. He is assisted by a team of experienced professionals. The university has more than 1500 teaching and non teaching staff.
Diversified Academic Courses :
The University offers undergraduate, post-graduate and doctorate programs over a wide range of subjects which includes engineering, computer applications, management, agriculture, architecture, biotechnology, law and pharmacy. The courses undertaken by the university are B.Tech, M.Tech, B.Com, M.Com, BBA, MBA, BA LLB, B.Sc, BCA, Ph D, M.Sc, etc. Further, the University is adding new courses to its portfolio on a regular basis as a part of upgradation. In FY22, the University has started two new courses that are LLM and B.A. (Hons.) (Eng.). For AY23, the University has added BCA (Hons.).
Awards, Accreditations and Collaborations :
GLA University, an autonomous body, has been established by the Uttar Pradesh State Legislature Act and recognized by University Grants Commission, National Council of Teacher Education (NCTE), Pharmacy Council of India (PCI), Bar Council of India (BCI). It has been accredited by National Assessment & Accreditation Council (NAAC) with ‘A’ Grade. All the courses are AICTE approved. Further it has also signed MOU with 20 foreign universities (Previously it was with 13 foreign universities) across USA, UK, Taiwan, Italy Brazil & Australia which has enabled the students to pursue higher studies, summer school and semester exchange programmes in those universities.
Growth in Operating Receipts :
Total Operating Income (TOI) has increased from Rs. 144.02 crs in FY21 (audited) to Rs. 195.56 crs in FY21 (provisional) which is approx. 35% increase in the TOI. TOI of the University is increasing at a moderate CAGR of 7% from the last 4 years. Further, the TOI is expected to improve in the upcoming years with the establishment of its Greater Noida Campus, which is expected to get operation from academic year 2023 itself.
Comfortable Debt Service and Gearing Ratio’s :
There is an improvement in the debt service coverage ratio of the University i.e. ISCR and DSCR has improved from 5.25x and 1.23x in FY21 (aud.) to 12.96x and 4.93x in FY22 (prov.). Gearing and leverage ratio of the university are comfortable with Total debt/ TNW of 0.15x and TOL/TNW of 0.26x in FY22 (prov.)
Improved Profitability and Net Worth :
Improvement in profitability and net worth of the university has been observed. EBIDTA has improved from Rs. 35.68 crs in FY21 (aud.) to Rs. 53 crs in FY22 (prov.). However, operating margins are 26.98% in FY22 (provisional) vs 24.27% in FY21. Net Surplus (PAT) has improved from Rs. 23.64 crs in FY21 (aud.) to Rs. 43.41 crs in FY22 (prov.) on account of increase in TOI and reduction in finance cost. Total Corpus Fund of the university improved to Rs. 326.36 crs in FY22 (prov.) from Rs. 282.95 crs in FY21 (aud.) due to retention of profits.

Credit Risks:

Exposure to intense competition :
Intense competition from other professional colleges/universities. Sustained inflow of students to the university depends to a large extent on the trust's ability to provide placements to the students and to offer quality education through continuous infrastructure development.
Regulatory Risk :
There exist regulatory risk as it is highly regulated by various governmental and quasi-governmental agencies. The Society has to comply with specific operational and infrastructure norms as laid down by the regulatory bodies.
CAPEX Stabilisation Risk and Debt Intake :
The university is in process of establishing a new campus in Greater Noida and also planning capex at Mathura (existing) campus. The project cost for the entire capex is Rs. 190.95 crs, which will be executed in two stages i.e. for Rs. 121.20 crs in FY23 and for Rs. 69.75 crs in FY24. For capex planned for FY23, the trust has already been sanctioned term loans of Rs. 106.70 crs dated 25-May-2022 (not included in rated amount), part disbursement i.e. of Rs. 48.68 crs already done till 22 June, 2022. While the financial risk profile of the trust remains comfortable despite the addition of capex debt. Howver, any new debt-funded capex is likely to impact the credit metrics and remains a key monitorable. Stabilisation of new capex will gradually happen as enrolments will occur in batches and it will take some time to breakeven on the new facilities.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as mentioned in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Upward: The rating may be upgraded if there is improvement in the scale of operations, profitability and the overall financial risk profile.

Downward: BWR may revise the ratings downwards if the University achieves notably lower revenue than expected and in case of deterioration in the overall financial risk profile.

LIQUIDITY INDICATORS - Adequate

The Trust has an adequate liquidity position. Against a current portion of long term debt (CPLTD) of Rs 17.61 Crs in FY21, the university had a cash accruals of Rs. 29.36 Crs in FY21. For FY22, against CPLTD of Rs. 10.13 crs, the University has a cash accruals of Rs. 49.29 crs. The University projected to generate cash accruals of Rs. 56.17 Crs in FY23 against a CPLTD of Rs. 13.51 Crs, thereby indicating an adequate liquidity position. Working capital utilization is 40% in the last 12 months as reported by the bank dated 27 June, 2022.

ABOUT THE ENTITY

Shri Jagannath Prasad Ganeshi Lal Bajaj Charitable Trust Samiti (SJPGCT), incorporated under the Societies Registration Act, 1860, was founded by Mr. Narayan Das Agarwal in December 1991. The trust started with the establishment of GLA Institute of Technology & Management offering B. Tech, MCA & MBA programs, in the year 1998-1999. It attained private university status in 2010 under the name of 'GLA University (GLA)'. From academic year 2010-11, all the courses were under one university-GLA University. GLA, an autonomous body, has been established by the Uttar Pradesh State Legislature Act and recognized by University Grants Commission, National Council of Teacher Education (NCTE), Pharmacy Council of India (PCI), Bar Council of India (BCI). It has been accredited by National Assessment & Accreditation Council (NAAC) with ‘A’ Grade. All the courses are AICTE approved. The university is located at NH-2 Delhi-Mathura Road, Mathura, Uttar Pradesh. With eight different educational institutes under its ambit, it presently offers undergraduate, post-graduate and doctorate programs over a wide range of subjects which includes engineering, computer applications, management, agriculture, architecture, biotechnology, law, fitness and pharmacy.

There Business Management Institute has been awarded accreditation by IACBE (International Accreditation Council for Business Education), US based accreditation agency recognised by CHEA (Council for Higher Education Accreditation) in March 2020 for seven years. The accreditation has been given for all three level of courses i.e., Undergraduate, Graduate and Doctoral levels of Management. (BBA, BBA(FB), B.Com (H), MBA, Ph.D.)

The institutes under the ambit of the university are: -

Faculty of Education
Institute of Applied Science & Humanities
Institute of Business Management
Institute of Engineering & Technology
Institute of Legal Studies
Institute of Pharmaceutical Research
University Polytechnic
Institute of Physical Education

There are 15 Boys and 4 Girls hostels where around 5,953 students resides who are from outstation. All the hostels are located in the University premises itself along with canteen facility.

Transportation facility is provided through buses from all the locations in Mathura, Vrindavan, Kossi, Math, Gowardhan & Chhata. The campus has a huge Central Library & the entire campus is WIFI enabled. It also has all Sports facilities & other required infrastructure available in house

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 20-21 (Audited)	FY 19-20 (Audited)
Operating Revenue	Rs.Crs.	146.99	168.35
EBITDA	Rs.Crs.	35.68	39.43
PAT	Rs.Crs.	23.64	26.73
Corpus	Rs.Crs.	282.95	259.31
Total Debt/Corpus	Times	0.19	0.31
Current Ratio	Times	1.29	1.04

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	54.28	BWR BBB+/Positive (Reaffirmation and change in Outlook)	11Jun2021	BWR BBB+ Stable (Reaffirmation)	05Jun2020	BWR BBB+ Stable (Assignment)	NA	NA
Grand Total		54.28	(Rupees Fifty Four Crores and Twenty Eight 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
Aanchal Gupta Ratings Analyst aanchal.g@brickworkratings.com	Tanu Sharma Director - Ratings tanusharma@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com

Shri Jagannath Prasad Ganeshi Lal Bajaj Charitable Trust Samiti

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	Term Loan - Sanctioned	_	_	0.00
2	HDFC Bank	Term Loan - Sanctioned	_	_	0.00
3	HDFC Bank	Term Loan - Sanctioned	0.77	_	0.77
4	HDFC Bank	Term Loan - Sanctioned	6.00	_	6.00
5	HDFC Bank	Term Loan - Sanctioned	0.29	_	0.29
6	HDFC Bank	Term Loan - Sanctioned	_	_	0.00
7	HDFC Bank	Term Loan - Sanctioned	5.44	_	5.44
8	HDFC Bank	Term Loan - Sanctioned	3.25	_	3.25
9	HDFC Bank	Term Loan - Sanctioned	12.22	_	12.22
10	HDFC Bank	Over Draft - Sanctioned	24.99	_	24.99
11	HDFC Bank	Dropline OD - Sanctioned	1.32	_	1.32
Total			54.28	0.00	54.28
TOTAL (Rupees Fifty Four Crores and Twenty Eight lakhs Only)

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