By Karun Tiwari

India Ratings and Research (Ind-Ra) has taken the following rating actions on Tata Advanced Systems Limited’s (TASL):

Instrument Type

Date of Issuance

Coupon Rate

Maturity Date

Size of Issue (million)

Rating/Outlook

Rating Action

Long-Term Issuer Rating

-

-

-

-

IND AA-/Stable

Affirmed

Proposed commercial paper (CP)*#

-

-

-

INR1,000

IND A1+

Assigned

Term loan

-

-

March 2026

INR18,407

IND AA/Stable

Affirmed

Fund-based working capital limits

-

-

-

INR8,850

IND AA/Stable/IND A1+

Affirmed

Non-fund-based limits

-

-

-

INR41,189

IND AA/Stable/IND A1+

Affirmed

CP

-

-

360 days

INR1,000

IND A1+

Affirmed

*According to the draft terms, these facilities will largely be utilised towards funding the working capital requirements
#Unallocated

Analytical Approach: Ind-Ra continues to take a consolidated view of TASL and its subsidiaries and joint ventures (JVs), collectively referred to as Tata Aerospace & Defense (TAD), to arrive at the ratings on account of the strong operational and strategic linkages among them. Also, the ratings are supported by TASL being a 100% subsidiary of TSL with strong operational and strategic linkages.

KEY RATING DRIVERS

For the detailed rating rationale, please click here.


RATING SENSITIVITIES

Negative: Significant deterioration in the consolidated credit metrics on a sustained basis or any weakening of TAD’s linkages with TSPL will be negative for the ratings.
 


COMPANY PROFILE

Incorporated in 2007, TASL is a holding-cum-operating company that operates in the areas of defence, aerospace, aero structures and homeland security.

CONSOLIDATED FINANCIAL SUMMARY

Particulars

9MFY21

FY20

FY19

Revenue (INR billion)

8.0

13.3

5.47

EBITDA (INR billion)

0.03

1.85

-0.06

EBITDA margin (%)

0.4

13.9

-1.0

Profit after tax (INR billion)

-0.73

0.63

0.66

Profit after tax margin (%)

n.m.

4.7

12.1

Total adjusted debt (INR billion)

20.4

7.7

4.83

Cash and cash equivalent (INR billion)

1.34

0.43

0.11

Source: TASL, Ind-Ra


RATING HISTORY

Instrument Type

Current Rating/Outlook

Historical Rating/Outlook

Rating Type

Rated Limits (million)

Rating

7 May 2021

23 October 2020

26 June 2020

24 April 2019

03 April 2020

28 March 2018

Issuer rating

Long-term

-

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA-/Stable

Non-fund-based limits

Long-term/Short-term

INR41,189

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND A1+

Fund-based working capital limits

Long-term/Short-term

INR8,850

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA/Stable/IND A1+

IND AA-/Stable

Term loan

Long-term

INR18,407

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA/Stable

IND AA-/Stable

CP

Short-term

INR2,000

IND A1+

IND A1+

IND A1+

 

-

 

-


COMPLEXITY LEVEL OF INSTRUMENTS

Instrument Type

Complexity Indicator

Fund-based working capital limits

Low

Non-fund-based working capital limits

Low

Term loan

Low

CP

Low

 

For details on the complexity level of the instruments, please visit https://www.indiaratings.co.in/complexity-indicators.

SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

ABOUT INDIA RATINGS AND RESEARCH

About India Ratings and Research: India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies and project finance companies. 

Headquartered in Mumbai, Ind-Ra has seven branch offices located in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Pune. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank. 

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For more information, visit www.indiaratings.co.in.

DISCLAIMER

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Analyst Names

  • Primary Analyst

    Karun Tiwari

    Senior Analyst
    India Ratings and Research Pvt Ltd DLF Epitome, Level 16, Building No. 5, Tower B DLF Cyber City, Gurgaon Haryana 122002
    0124 6687272

    Media Relation

    Ankur Dahiya

    Manager – Corporate Communication
    +91 22 40356121