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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 417.50 | ACUITE BBB | Stable | Assigned | - |
| Total Outstanding | 417.50 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has assigned the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs . 417.50 Cr. bank facilities of PRA Maa Ugratara Highway Private Limited (PRA PMUHPL). The outlook is ‘Stable’.
Rationale for Rating The rating derives comfort from the financial and operational support from Barbrik Project Limited and PRA India Private limited, referred as Barbrik group (rated at Acuité A /Stable/A1) to the company. The rating also factors in the fact that the project is being developed on a hybrid annuity model (HAM) where revenue risk is low post-commencement of project execution. Moreover, the company has achieved financial closure to fund its project and is also expected to receive the appointed date by April 2025. These rating strengths are partially offset by high implementation risk. |
| About the Company |
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Raipur – Based, Pra Maa Ugratara Highway Private Limited was incorporated in 2024. The company entered into HAM agreement with National Highways Authority of India (NHAI) for the construction of four laning between Existing Km 55.000/ Design Km 59.000 (Kuru) to Existing Km 96.470/ Design km 97.600 (Udaipura) on NH-75 (New NH-39) Sec-I in the state of Jharkhand on HAM mode.
The directors of the company are Mr. Rajesh Kumar Agrawal and Mr. Ayush Agrawal. |
| Unsupported Rating |
| ACUITE BB-/Stable |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of PRA Maa Ugratara Highway Private Limited and notched up the standalone rating by factoring in the financial and operational linkages with Barbrik Project Limited (rated at ACUITE A/Stable/A1) and PRA India Private Limited (rated at ACUITE A/Stable/A1). |
| Key Rating Drivers |
| Strengths |
| Low Revenue Risk
PRA PMUHPL has signed an agreement with NHAI for contractual payment in form of grants and annuities. The project cost is Rs. 913.40 Cr. (including GST) which is funded through Rs. 113.58 Cr. from promoters contribution, Rs. 324 Cr. as Grant from Authority, Rs. 58.32 Cr. as GST on grant and Rs. 417.50 Cr. term loan (tied up with Union Bank Of India) . The company will receive 40 percent of project cost in form of grants during the construction period. The remaining 60% of project cost shall be payable in the form of 30 semi-annuities spread over a period of 15 years post achievement of commercial operation date (COD). The project has an escalation clause which helps the company to mitigate the material fluctuation risk. The annuities will also include interest on remaining completion cost. The interest will be calculated on average MCLR rate plus 1.25 percent.
Benefits derived from the parent Barbrik Project Limited is the lead sponsor and PRA India Private Limited is the EPC Contractor for PRA PMUHPL. PRA Group is a reputed EPC player in Chhattisgarh and has almost three decades of experience in construction of roads and highways. The group has executed similar kinds of road projects in EPC mode. Moreover, the group has strong financial flexibility as reflected from its healthy financial risk profile and adequate liquidity profile. |
| Weaknesses |
| High implementation risk
The project is in a nascent stage as the appointment date is yet to be received. The company has already received about 50 percent of Right of way (ROW) and is in the process to acquire remaining ROW is underway. Acuite believes that any delay in obtaining necessary approvals and appointment date may lead to staggering of the project. Susceptibility to risks related to the tender-based nature of operations and competition SPV remains exposed to inherent cyclicality in the construction industry and volatility in profits . Though industry prospects seem healthy over the medium term with increased central government focus on the infrastructure sector (especially roads and highways), most of the projects are tender-based and players face intense competition and bid aggressively for contracts. |
| Rating Sensitivities |
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Achievement of milestones as per schedule. Timely infusion of funds by promoters in the form of equity and unsecured loans |
| Liquidity Position |
| Adequate |
| The company has adequate liquidity profile marked by strong resource mobilization from its parent entity. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 0.00 | 0.00 |
| PAT | Rs. Cr. | 0.00 | 0.00 |
| PAT Margin | (%) | 0.00 | 0.00 |
| Total Debt/Tangible Net Worth | Times | 0.00 | 0.00 |
| PBDIT/Interest | Times | 0.00 | 0.00 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite) |
| Not applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm |
| Note on complexity levels of the rated instrument |
| Rating History:Not Applicable |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
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