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Feb 02, 2012, 06.08 PM IST | Source: Moneycontrol.com

Brickwork assigns BWR AA rating to PTC India Fin NCD issue

Brickwork Ratings has assigned BWR AA rating with stable outlook for PTC India Financial Services Limited (PFS)s NCD Issue of Rs 100 Crs.

Brickwork Ratings has assigned BWR AA rating with stable outlook for PTC India Financial Services Limited (PFS)s NCD Issue of Rs 100 Crs.

Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The Rating Outlook further signifies the direction of the rating being stable in the near term. BWR has essentially relied upon the audited financial statements for FY11, unaudited results for H1 FY12, information and clarifications provided by the issuer in assigning the Rating.

The rating factors, inter alia, significant stake held by the PTC India Ltd., the promoter, comfortable capital adequacy, healthy earning assets and lean operating structure. PTC India Financial Services Limited (PFS) has been given Infrastructure Financial Company (IFC) status by the Reserve Bank of India (RBI) on August 24, 2010. However, the rating is partially affected by exposure to a single sector, the tendency of energy projects to have time and cost overrun, competition from well established and stronger players.

Going forward, the Company is planning to float an Energy sector fund to tap the opportunities available and also venturing into debt syndication business in the near future. As of September ending 2011, the Company has used mix of debt (including short term and long term) and equity to sanction financial assistance of Rs 2101 Crore to 22 projects with representing 8,618 MW of aggregate power generation capacity. However, disbursement stood at Rs 785 Crore as of H1 FY12.

The companys total revenue has improved to Rs 108.85 Crore in FY 11 as against Rs 53.48 Crore in FY10. PAT has increased to Rs 37.03 Crore in FY11 from Rs 25.45 Crore in FY10.  Interest income increased to Rs 73.52 Crore in FY11 from Rs 13.57 Crore in FY10. CRAR stood at 68.61% as of H1 FY12. Total revenue has improved to Rs 97.07 Crore in H1 FY12 as against Rs 53.60 Crore in H1 FY11. PAT has increased to Rs 32.88 Crore in H1 FY12 from Rs 25.51 Crore in H1 FY11.

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