Hyderabad : Mytrah Energy (India) Pvt Ltd (MEIPL), one of the leading independent renewable power producers of India, today announced that Ind-Ra has upgraded the long-term credit rating by 2 notches from ‘BBB’ to ‘A-’ and the short-term rating is also upgraded from A3 to A2+.

Commenting on this development Vikram Kailas, VC & MD of Mytrah Energy said “We are exhilarated by the improvement in our rating. This development reinforces the fact that we are now more commercially and operationally stable, and primed to take growth curve to the next level. The upgrade is a reassertion of Mytrah’s strengths as we work towards achieving our vision of creating secure energy future for India.”

 

The advancement in the rating for the company was granted based on below rating drivers:

• Mytrah showed an Increase in the Scale of Operations and Diversification. Company’s operational and committed renewable asset portfolio grew to 2.2GW in FYE18 from 1.75GW in FYE17, with 1.8GW of wind assets and 0.4GW of solar assets.
• Company’s In-House Engineering, Procurement and Construction (EPC) teams strongly supported to the Cash Flows.  EPC capability for wind and solar projects has allowed it to earn EPC margins, which otherwise would have been passed on to original equipment manufacturers. This generates additional cash flows for the company which can be deployed in its new projects. MEIPL’s gross margins from the EPC business improved to INR3,500 million in FY18 from INR1,040 million in FY17.
• Mytrah Energy raised USD277 million (INR18 billion) from Piramal Enterprises Limited in September 2017 to provide an exit to existing investors and fund growth plans. Further, the company intends to replace the bridge capital by raising equity from a strategic investor.
• A few other drivers like increase in revenue and EBITDA, Comfortable Asset-Level Credit Profile amongst other added to the scores for Ind-Ra rating.

 

Ind-Ra described the rating with a positive remark that Mytrah Energy has showcased a substantial increase in the portfolio size which was backed by an adequately funded growth plan, improvement in asset and counterparty diversification, timely execution of pipeline capacities resulting in healthy cash generation.

 

Mytrah presented the following achievements over the last few years:-

• Commissioning of 34 wind and solar projects across 9 states, built in different geographic terrains and on varied land types.
• Around 5,000 acres of land acquired for various wind and solar projects.
• Erection of around 650 wind turbines.
• Building up of around 800 Kms of 33KV lines and around 500 Kms of 132KV & 220KV lines as part of transmission and evacuation infrastructure.
• Construction of 606 Kms of Road.
• Laying of 2.5 lakh cubic meters of concrete for foundations/column posts.
• No cost over runs.
• Higher return ratio’s than competition.
• Comfortable cash flow profile.