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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 100.00 | Not Applicable | Withdrawn | - |
| Non Convertible Debentures (NCD) | 375.00 | Not Applicable | Withdrawn | - |
| Commercial Paper (CP) | 225.00 | - | Not Applicable | Withdrawn |
| Total Outstanding Quantum (Rs. Cr) | 0.00 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 700.00 | - | - |
| Rating Rationale |
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Acuité has withdrawn its long term rating on the issue of non-convertible debentures of Rs.375.00 Cr and bank loan ratings of Rs.100 Cr. of Welspun Enterprises Limited (WEL). Further, Acuité has also withdrawn its short-term rating on the Rs.225.00 Cr Commercial Paper (CP) of WEL. All the oustanding NCDs, term loans and CPs have been paid off and the rating has been withdrawn on account of the request received from the company along with redemption certificate and NOCs from the lenders as per Acuité policy on withdrawal of ratings. |
| About the Company |
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Welspun Enterprises Limited (WEL) is the infrastructure arm of Welspun Group promoted by Mr. B.K. Goenka and Mr. R R Mandawewala. WEL is an operating as well as holding company, executing Engineering Procurement and Construction (EPC) contracts for construction of roads, highways. The company has successfully executed Build Operate and Transfer (BOT) and Hybrid Annuity Model (HAM) projects in the past and is presently focused on executing existing captive HAM and BOT projects along with diversification in external EPC contracts under road and water segment. WEL has an established presence in road infrastructure through various SPVs, and is also engaged in oil and gas exploration activities through Welspun Natural Resources Private Limited (WNRPL). WNRPL in a joint venture with Adani Group has promoted Adani Welspun Exploration Limited. WNRPL has 4 Oil & Gas blocks of which one block is in Kutch, 2 blocks in Mumbai (under AWEL) and 1 block is in Palej (under WNRPL). |
| Analytical Approach |
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Acuité has considered the standalone business and financial risk profiles of the WEL to arrive at this rating. |
Key Rating Drivers
| Strengths |
| Not Applicable |
| Weaknesses |
| Not Applicable |
| ESG Factors Relevant for Rating |
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Not Applicable |
| Rating Sensitivities |
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Not Applicable |
| All Covenants |
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Not Applicable |
| Liquidity Position: Not Applicable |
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| Outlook: Not Applicable |
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| Other Factors affecting Rating |
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Not Applicable |
| Particulars | Unit | FY 23 (Actual) | FY 22 (Actual) |
| Operating Income | Rs. Cr. | 2676.38 | 1306.94 |
| PAT | Rs. Cr. | 713.12 | 93.44 |
| PAT Margin | (%) | 26.64 | 7.15 |
| Total Debt/Tangible Net Worth | Times | 0.27 | 0.36 |
| PBDIT/Interest | Times | 11.19 | 3.40 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable |
| Any other information |
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Not Applicable |
| 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 • Commercial Paper: https://www.acuite.in/view-rating-criteria-54.htm |
| Note on complexity levels of the rated instrument |
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In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuité'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.
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