Press Release

Press Release

April 24, 2025

TRANSDAMODAR MINING PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	10.00	ACUITE A- \| Stable \| Assigned	-
Bank Loan Ratings	25.00	ACUITE A- \| Stable \| Reaffirmed	-
Bank Loan Ratings	1.00	-	ACUITE A2+ \| Assigned
Bank Loan Ratings	30.00	-	ACUITE A2+ \| Reaffirmed
Total Outstanding	66.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and its short-term rating of ‘ACUITE A2+’ (read as ACUITE A two plus) on the Rs.55 Cr. bank facilities of Transdamodar Mining Private Limited (TMPL). The outlook is ‘Stable’.

Acuite has assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and its short-term rating of ‘ACUITE A2+’ (read as ACUITE A two plus) on the Rs.11.00 Cr. bank facilities of Transdamodar Mining Private Limited (TMPL). The outlook is ‘Stable’.

Rationale for Reaffirmation
The rating reaffirmation takes into account the strong parental support from Goquest Solutions Private Limited (GSPL) in the form 100% shareholding in TMPL. The rating also factors in improvement in revenue from operations to Rs. 141.53 Cr. in FY2024 compared to Rs.121.74 Cr. in FY2023 on account of increase in production capacity, price escalation and change in loading and delivery points. The operating profit margin of the company improved to 24.21 percent in FY2024 as against 19.56 per cent in FY2023 majorly led by process optimization and reduction in operational expenses. The rating also draws comfort from healthy financial position, characterized by a moderate net worth base and low gearing. However, these strengths are partially offset by intensive working capital management reflected by high Gross Current Asset (GCA) days on account of stretched receivables. The rating is further constrained by the vulnerability to heightened regulations and the inherent cyclicality within the mining sector.

About the Company

Transdamodar Mining Private Limited (TMPL) was incorporated in 2016 by AMPL Resources Private Limited (Erstwhile Ambey Mining Private Limited)(AMPL) and Godavari Commodities Limited (GCL) (rated at ACUITE A/Stable/A1), who are holding 51 per cent and 49 per cent of shares respectively. The company was appointed as Mine Developer and Operator (MDO), for 1 coal bock at Barjora for a period of 27 years to produce 1 MTPA of coal, by The Durgapur Projects Limited (DPL) (rated at ACUITE BBB+/Stable/A2), which is a Government of West Bengal undertaking. The company is engaged in excavation and delivery of coal including Over Burden removal, extraction, crushing of coal and transportation of coal from mine face (s) to pit head coal stock and eventually to delivery point and loading of coal onto the railway wagons at assigned delivery point.

Currently the company is held by Goquest Solutions Private Limited ( GSPL ) which holds ~100% shareholding in the company.

Unsupported Rating

ACUITE BBB-/Stable

Analytical Approach

Acuité has taken a standalone view of the business and financial risk profile of TMPL to arrive at the rating. However, Acuité has taken into account the strong parentage of the entity by way of shareholding held by AMPL and GCL along with an unconditional and irrevocable guarantee extended to TMPL in proportion to their stake. The rating has been notched up based on support from the key stakeholders and its strategic importance as an MDO of a captive mine of DPL.

Key Rating Drivers

Strengths

Change in ownership from AMPL Resources Private Limited (AMPL) and GCL (Godavari Commodities Limited) to Goquest Solution Private Limited (GSPL)
Previously held by AMPL and GCL in 51% and 49% ownership respectively, TMPL's current shareholding lies 100% with GSPL. Incorporated in September 2016, GSPL is a joint venture between AMPL and GCL with shareholding of 51% and 49%, respectively. GSPL is engaged in coal excavation, removal of overburden, coal extraction, and coal transportation. The company is designated as the mine developer and operator (MDO) for Barjore coal mine (annual mining capacity- 0.5 MTPA) and Gangaramchak & Gangaramchak- Bhadulia coal mine (annual mining capacity- 3 MTPA) of The West Bengal Power Development Corporation Limited (WBPDCL). Coal reserve of Barjore mine exhausted in FY24. Therefore, FY25 onwards, GSPL will be the MDO exclusively for Gangaramchak & Gangaramchak- Bhadulia coal mine.

Acuité holds the belief that the substantial operational track record of these promoter companies will continue to contribute positively to the company's growth, leading to consistent expansion in operational scale.

Steady improvement in the Business Profile
In FY2024, the company achieved revenues of Rs. 141.53 Cr. up from Rs. 121.74 Cr. in FY2023 and Rs. 96.34 Cr. in FY2022, reflecting a steady growth trajectory. The stabilization of operations and consistent increase in coal produced have been key factors for increase in the revenues. Throughout FY2024, the company maintained high levels of Overburden Removal (OBR), involving extensive excavation of OB strips - around 3.23 million Cubic Metres (M.Cu.M). This trend continued from FY2023, where the company excavated 3.62 M.Cu.M of OB, up from 2.43 M.Cu.M in FY2022. In FY2024, the operating profit margin further increased to 24.21 percent, reflecting continued operational efficiency and cost management. The net profitability margin also improved to 9.54 percent, indicating better overall profitability. The ROCE for FY2024 rose to 29.13 percent, showcasing strong returns on capital employed. The increase in margin is due to a ramp-up in operations, which led to an improvement in quantity of coal, escalation of prices and changes in transportation cost – passed on to customers -due to changes in loading and delivery points.

Average financial risk profile
The company’s average financial risk profile is marked by a healthy net worth base, comfortable gearing, and moderate debt protection metrics. The adjusted tangible net worth of the company was Rs. 76.57 Cr. as on March 31, 2024. Gearing of the company remained comfortable below unity at 0.85 times as on March 31, 2024, compared to 0.18 times as on March 31, 2023. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.23 times as on March 31, 2024, compared to 0.93 times as on March 31, 2023. The moderate debt protection metrics of the company are marked by an Interest Coverage Ratio of 2.10 times and a Debt Service Coverage Ratio (DSCR) of 1.81 times as on March 31, 2024, compared to 1.75 times and 1.59 times as on March 31, 2023, respectively. Net Cash Accruals/Total Debt (NCA/TD) stood at 0.21 times as on March 31, 2024, compared to 0.55 times as on March 31, 2023.

Acuité believes that TMPL’s financial profile has strengthened further in FY2024 and the same is likely to sustain going forward, supported by healthy internal accrual generation and no major increase in the company’s debt levels in the absence of any major debt-funded capex plans.

Weaknesses

Working capital intensive nature of operation
The working capital intensive cycle of the company is marked by Gross Current Assets (GCA) of 354 days in FY 2024 as compared to 424 days in FY2023. The high level of GCA days is on account of stretched receivables. The debtor period stood high at 344 days as on FY2024 as compared to 412 days as on FY2023. The only debtor of the company is The Durgapur Projects Limited (DPL; rated ACUITE BBB+/Stable/A2) which is a state government entity and TMPL is the MDO of the captive mine owned by the DPL. Acuité believes that the working capital operations of the company will remain almost at the same levels as evident from the inherently high debtor period and the company’s exposure to counterparty credit risk associated with DPL, given its average financial risk profile. However, comfort can be drawn from the power purchase agreement (PPA) between WBSEDCL and DPL.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

Acuite takes into consideration the benefit derived by TMPL from the 100% ownership of Goquest Solution Private Limited(GSPL), which is a joint venture between AMPL and GCL with shareholding of 51% and 49%, respectively.

Stress Case Scenario
While the rating has been derived on the standalone credit risk profile and cash flows of the company, Acuite believes given the 100% holding of GSPL ; in case of any stress case scenario, the required support would come from the parent companies.

Rating Sensitivities

Change in capital structure
Increase in production capacity
Elongation of working capital cycle

Liquidity Position

Adequate

TMPL’s liquidity is adequate marked by steady net cash accruals of Rs. 13.62 Cr. as on March 31, 2024, as against no long-term debt repayment over the same period. The current ratio stood comfortable at 2.71 times as on March 31,2024. Further, the cash and bank balances of the trust stood at Rs.1.51 Cr. in FY2024. Moreover, the average utilization of the fund-based limits stood at ~85 per cent during the last 5 months ended January 2025. The working capital management of the company is marked by Gross Current Assets (GCA) of 354 days in FY 2024 as compared to 424 days in FY2023.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	141.53	121.74
PAT	Rs. Cr.	13.50	8.39
PAT Margin	(%)	9.54	6.89
Total Debt/Tangible Net Worth	Times	0.85	0.18
PBDIT/Interest	Times	2.10	1.75

Status of non-cooperation with previous CRA (if applicable)

Not applicable

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

• 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

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
19 Nov 2024	Cash Credit	Long Term	25.00	ACUITE A- \| Stable (Reaffirmed)
19 Nov 2024	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A2+ (Reaffirmed)
22 Aug 2023	Cash Credit	Long Term	25.00	ACUITE A- \| Stable (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	30.00	ACUITE A2+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	55.00	ACUITE A2+ (Reaffirmed & Withdrawn)
27 May 2022	Cash Credit	Long Term	10.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
27 May 2022	Bank Guarantee/Letter of Guarantee	Short Term	100.00	ACUITE A2+ (Upgraded from ACUITE A2)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Indusind Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE A2+ \| Reaffirmed
Indusind Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A2+ \| Assigned
Indusind Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A- \| Stable \| Reaffirmed
Indusind Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A- \| Stable \| Assigned

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Serial Number	Company Name
1	Transdamodar Mining Private Limited
2	Goquest Solution Private Limited

Contacts

Mohit Jain
Senior Vice President - Rating Operations

Dibyendu Roy
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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