[{"pressReleaseID":75306,"reportID":null,"reportTableReportID":null,"pressReleaseTitle":"India Ratings Assigns RDC Concrete (India)’s Additional NCDs & Proposed Term Loan ‘IND A-’/Negative; Affirms Existing Ratings","prTypeID":null,"reportTypeID":null,"version":"new","prTypeName":"RAC","pressReleaseDate":null,"acceptanceStatus":"Yes","imagePath":null,"thumbNailImagePath":"https://www.indiaratings.co.in/data/Uploads/PressReleases/75306/Images/1.jpg","financialSummaryPath":"","description":null,"documentTitle":null,"documentType":null,"queryType":null,"isRAC":true,"sector":"Corporates","subSector":"Other Construction Materials","issuerID":8286,"issuerName":"RDC Concrete(India) Limited (formerly RDC Concrete (India) Private Limited)","overview":"\r\n\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\r\n\t\r\n\t\t
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\r\n\t\t\t\tIndia Ratings and Research (Ind-Ra) has taken the following rating actions on RDC Concrete (India) Limited’s (RDC) non-convertible debentures (NCDs) and bank facilities as follows:
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\r\n\t\t\t\tAnalytical Approach: Ind-Ra continues to fully consolidate RDC’s wholly owned subsidiaries - Neptune Readymix Concrete Private Limited and Ultrafine Minerals & Admixtures Private Limited - while arriving at the ratings as all the companies operate in the same line of business and have strong linkages. Furthermore, the agency continues to consider RDC’s moderate legal, operational and strategic linkages with its parent Hella Infra Market Private Limited (Hella; ‘IND A-’/Negative) for the rating review. Hella has also provided a post-default corporate guarantee to all the borrowings of RDC and infused unsecured loans into RDC basis its requirement.
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\r\n\t\t\t\tStrong Market Position with Diversified Geographical Presence: RDC is a leading player in the RMC business and has over the years diversified its geographic reach from predominantly being a southern India player to a pan India player having a significant presence in south. In 1HFY25, southern region accounted for 41% of sales (FY21: 53%; FY17: 65%), western region 29% (21%; 13%) while the northern and eastern region accounted for around 30% with nearly equal share (around 25%; about 20%). The diversification has resulted in RDC enjoying a healthy market share. As per the management, the company is a leading independent RMC manufacturer and its acquisition by Hella has enabled the consolidated entity to become the second-largest player in India in the RMC business.  RDC has densified its RMC business by further penetrating its existing locations and adding more RMC plants and leveraging on its parentage diverse geographical mix. The company has 128 operating plants as of end-December 2024 (FY24: 108 plants; FY23: 84 plants).

Operating Performance Likely to Remain Strong in FY26: After the consolidated revenue doubling to INR20.3 billion in FY24 from FY22 (FY23: INR14.6 billion; FY22: INR10.1 billion), the revenue grew 27%yoy to INR17.5 billion in 9MFY25 due to the company’s increased focus on obtaining new clients in the industrial segment and successful expansions across various cities with plants diversified across the country. The increase in scale and geographical presence has improved the fleet utilisation and led to a substantial reduction in logistics cost, thereby structurally improving the profitability to around 8.5% over FY22-9MFY25 from an average of 4%-4.5% over FY19-FY21. As a result of higher density and efficient fleet allocation, a single transit mixer can now cater to multiple plants located in the same geography.

With a fall in realisations, the EBITDA/cubic meters (cum) declined to around INR285 in 9MFY25 (FY24: INR390; 1HFY24: INR313) but the sharp increase in volumes (9MFY25: 5,326 kilo cum, FY24: 4,478 kcum) resulted in a 50% yoy increase in the absolute EBITDA to INR1.5 billion (FY24: INR1.8 billion). Ind-Ra believes growth in volume is likely to continue over FY25-FY27  with the company adding additional plants and the ramp up of the newly operationalised plants; however, the margins are likely to remain range bound.

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\r\n\t\t\t\tCapacity Expansion to Drive Near-to-medium Growth; Credit Metrics to Remain Comfortable: RDC’s capex intensity is likely to increase in the near term with the company incurring a total capex of around INR1.7 billion in 9MFY25 (FY24: INR1.7 billion; FY23: INR1.1 billion), with around 20 plants added. The management expects to add another five plants over 4QFY25 and around 30 plants, each year, over FY26-FY28, in addition to capex at its subsidiary Ultrafine Minerals & Admixtures, resulting in average capex spends of around INR1.6 billion each year. To fund the ongoing capex, the company raised a term debt of INR0.8 billion in 9MFY25. Ind-Ra believes higher volumes, driven by the new capacity additions would drive revenue growth as the capacities gradually ramp-up.  On an average, each plant (set up at a cost of INR30 million-50 million) takes three-to-six months to ramp up output and generate significant cash flows. The company also plans to increase its ground granulated blast-furnace slag sales in the near term.\r\n\t\t\t

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\r\n\t\t\t\tOn a consolidated basis, the net leverage (net debt/EBITDA), including acceptances) remained range-bound at around 2.0x in 9MFY25 (FY24: 2.2x; FY23: 2.5x) with the increase in net debt as the higher capex and working capital requirements are being compensated by higher operational EBITDA. The gross interest coverage (EBITDA/gross interest expense) was comfortable at 3.1x in 9MFY25 (FY24: 2.9x; FY23: 3.2x).  While the company’s expansion plan is likely to lead to an increase in the net debt levels over FY24-FY26, a gradual ramp-up of the new capacities would keep credit metrics comfortable.\r\n\t\t\t

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\r\n\t\t\t\tFinancial Flexibility could Weaken; Continued Moderate Linkages with Parent: Ind-Ra believes Hella’s credit and liquidity profile is currently stretched with higher-than-expected net debt levels, despite equity infusion. While the parent is taking measures to shore up liquidity through refinancing arrangements, a sustained weakness would affect RDC’s financial flexibility. While there is no history of upstreaming cash or near-term plan, any weakness at the parent level potentially exposes RDC to the risk of upstreaming of funds or leveraging of balance sheet.  Hella divested around 17% stake in RDC in two tranches over FY24-FY25 to support the former’s liquidity,

The acquisition by Hella in December 2021 has boosted RDC ’s operating performance, given the former is also engaged in the supply of construction materials (including RMC), leading to optimised raw material sourcing, access to newer geographies and a larger customer base. Hella has also provided a post-default corporate guarantee to all the borrowings of RDC and  infused unsecured loans into RDC basis its requirement. The outstanding balance at FYE24 stood at around INR41 million (FYE23: INR267 million). Further, Hella converted its outstanding preference shares of INR46.7 million into equity in FY24. However, Hella has divested around 17% stake in RDC in two tranches over FY24-FY25 to support the former’s liquidity, indicating the strength of the strategic linkages would evolve, basis its future plans.\r\n\t\t\t

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\r\n\t\t\t\tIncrease in Debtors; Working Capital Management Remains Key: Debtors rose to INR5.8 billion at FYE24 (FYE23: INR4 billion) and further to INR7.1 billion at 9MFYE25 with the receivable period elongating to 111 days (FY24: 105 days, FY24: 101 days). The inherent characteristic of an RMC manufacturer is bulky receivable position which ranges from 90-120 days. Thus, there is a need for robust credit control policy to ensure conversion of EBITDA to cash flows. The net working capital increased to around INR1 billion in 9MFY25 (FY24: INR0.8 billion). Around 90% of RDC’s standalone receivables as of September 2024 are beyond 180 days (end-October 2023: 19%; March 2023: 3%); but is likely to improve with the payments likely to be received in 4QFY25.\r\n\t\t\t

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\r\n\t\t\t\tIn instances where credit is extended for more than 90 days, the counterparty risk profile is closely monitored by the company. The company follows a conservative accounting policy and provides as per expected credit loss by creating appropriate provisions for the debtors exceeding 180 days at 50% and 360 days at 100%. The company also has a diversified customer base, which fairly spreads out its counterparty risk. Accordingly, the bad debt write offs are negligible with the provision for bad debts of INR0.7 billion at 1HFYE25. \r\n\t\t\t

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\r\n\t\t\t\tThe company increased its payables to fund the increase in receivables. Creditors rose further to INR6.6 billion at 9MFYE25 (FYE24: INR5.5 billion, FYE23: INR3.5 billion). The company maintains a minimal inventory since concrete has a shelf life of only three hours and is produced, as and when an order is received. Given the inherent collection risk, RDC’s ability to maintain its working capital efficiency remains critical to its overall credit profile. \r\n\t\t\t

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\r\n\t\t\t\tHigh Competitive Intensity: The company faces intense competition from large integrated players and also from several unorganised players, owing to lower capital intensity and low value addition nature of the RMC business. With a fall in realisations, the company witnessed a contraction in EBITDA/cum in 9MFY25.
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\r\n\t\t\t\tPositive: Any event at RDC or its parent leading to an improvement in the financial flexibility of the company, along with an improvement in profitability with the net leverage (including acceptances) sustaining below 2.75x could lead to an Outlook revision to Stable.

Negative: Lack of improvement in the liquidity and/or financial flexibility at RDC/Hella and/or a decline in profitability and/or the credit metrics with the net leverage (including acceptances) exceeding 2.75x, will lead to a negative rating action.
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\r\n\t\t\t\tESG Factors Minimally Relevant to Rating: Unless otherwise disclosed in this section, the ESG issues are credit neutral or have only a minimal credit impact on RDC, due to either their nature or the way in which they are being managed by the entity. For more information on Ind-Ra’s ESG Relevance Disclosures, please click here. For answers to frequently asked questions regarding ESG Relevance Disclosures and their impact on ratings, please click here.
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\r\n\t\t\t\tSet up in 1993 by Unitech Constructions Ltd and RDC Concrete Singapore, RDC operates 128 RMC plants across India. In 2005, RDC was acquired by True North when it had five RMC plants and one paver block plant with operations in North India. RDC was acquired by Hella in December 2021.

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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.

","participationDisclosures":null,"disclaimer":"

ALL CREDIT RATINGS ASSIGNED BY INDIA RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: https://www.indiaratings.co.in/ratingdefinitions. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.INDIARATINGS.CO.IN. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. INDIA RATINGS’ CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE.

","metaTags":null,"effectiveDate":"Mar 04, 2025 | RDC Concrete(India) Limited (formerly RDC Concrete (India) Private Limited)","effectiveDateTime":"0001-01-01T00:00:00","dateOfCreation":"Mar 04, 2025","isDeleted":false,"isMigratedData":false,"viewCount":0,"facebookShareCount":0,"linkedInShareCount":0,"googlePlusShareCount":0,"twitterShareCount":0,"ratingCriteriaReportsIDs":"181,180,201,199,173","pressReleaseStatus":"Publish","activity":"Updated By UserID: 59482","lastActivityDate":"3/4/2025 4:45:35 AM","currentRatings":"\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n
\r\n Instrument Type\r\n \r\n Date of Issuance\r\n \r\n Coupon Rate\r\n \r\n Maturity Date\r\n \r\n Size of Issue (million)\r\n \r\n Rating Assigned along with Outlook/Watch\r\n \r\n Rating Action\r\n
\r\n Non-convertible debentures *#\r\n \r\n -\r\n \r\n -\r\n \r\n -\r\n \r\n INR650\r\n \r\n IND A-/Negative\r\n \r\n Assigned\r\n
\r\n Non-convertible debentures *#\r\n \r\n -\r\n \r\n -\r\n \r\n -\r\n \r\n INR330\r\n \r\n IND A-/Negative\r\n \r\n Affirmed\r\n
\r\n Proposed term loan\r\n \r\n -\r\n \r\n -\r\n \r\n -\r\n \r\n INR580\r\n \r\n IND A-/Negative\r\n \r\n Assigned\r\n
\r\n Proposed working capital limit\r\n \r\n -\r\n \r\n -\r\n \r\n -\r\n \r\n INR320\r\n \r\n IND A-/Negative/IND A2+\r\n \r\n Assigned\r\n
\r\n Non-fund-based working capital\r\n limit\r\n \r\n -\r\n \r\n -\r\n \r\n -\r\n \r\n INR300\r\n \r\n IND A-/Negative/IND A2+\r\n \r\n Affirmed\r\n
\r\n Fund-based working capital limit\r\n \r\n -\r\n \r\n -\r\n \r\n -\r\n \r\n INR1,800\r\n \r\n IND A-/Negative/IND A2+\r\n \r\n Affirmed\r\n
\r\n Term loan\r\n \r\n -\r\n \r\n -\r\n \r\n 31 March 2027\r\n \r\n INR2,040\r\n \r\n IND A-/Negative\r\n \r\n Affirmed\r\n
\r\n Proposed working capital limit\r\n \r\n -\r\n \r\n -\r\n \r\n -\r\n \r\n INR80\r\n \r\n IND A-/Negative/IND A2+\r\n \r\n Affirmed\r\n
\r\n\r\n# Ind-Ra has\r\ndisclosed the unsupported rating in compliance with the Securities and Exchange\r\nBoard of India’s Master Circular dated 3 July 2023. Securities backed by\r\nspecified support considerations, as mentioned in the circular, rated with or\r\nwithout a CE-suffix would require disclosing unsupported ratings without\r\nfactoring in the explicit credit enhancement (CE) from the specified support\r\nconsideration.
\r\n*Details in Annexure I

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\r\n\t\t\t\t\t\t\t20 February 2025\r\n\t\t\t\t\t\t

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\r\n\t\t\t\t\t\t\t21 February 2024\r\n\t\t\t\t\t\t

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\r\n\t\t\t\t\t\t\t22 September 2023\r\n\t\t\t\t\t\t

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\r\n\t\t\t\t\t\t\t22 February 2023\r\n\t\t\t\t\t\t

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\r\n\t\t\t\t\t\t\t25 May 2022\r\n\t\t\t\t\t\t

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\r\n\t\t\t\t\t\t\t11 October 2021\r\n\t\t\t\t\t\t

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\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tWD\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Rating Watch with Developing Implications\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tNon-fund-based working capital limits\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tLong-term/Short-term\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR300\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable/IND A1\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable/IND A1\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A1/Rating Watch with Developing Implications\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tFund-based working capital limits\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tLong-term/Short-term\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR1,800\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative / IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable/IND A1\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable/IND A1\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Rating Watch with Developing Implications/IND A1/ Rating Watch with Developing Implications\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tUnsupported rating\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tLong-term\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tTerm loan\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tLong-term\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR2,620\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Rating Watch with Developing Implications\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tProposed working capital limit\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tLong-term/Short-term\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR400\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative/IND A2+\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tNon-convertible debentures\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tLong-term\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR980\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Stable\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t-\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t


\r\n\t\t
\r\n\t\r\n","annexure":"\r\n\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\r\n\t\r\n\t\t
\r\n\t\t\t

\r\n\t\t\t\tAnnexure I\r\n\t\t\t

\r\n\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\t\r\n\t\t\t\t\r\n\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tInstrument Type\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tISIN\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tDate of Issuance\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tCoupon (%)\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tMaturity Date\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tSize of Issue
 (million)\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tRating/Outlook\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tNon-convertible debentures\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINE076I07012\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t6 April 2023\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t11.25\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t6 April 2025\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR50\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tUnutilised\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR930\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tIND A-/ Negative\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tTotal\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tINR980\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\tSource: NSDL\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t		\r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t

\r\n\t\t\t\t\t
\r\n\t\t\t

\r\n\t\t\t\t
ANNEXURE II\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\tFinancial Covenants for NCDs\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\tFor RDC on a consolidated basis:\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\ti) Maximum debt/tangible net worth (TNW)^ of 3.0x
ii) Maximum debt/EBITDA of 3.5x
iii) Minimum debt service coverage ratio of 1.33x
iv) Minimum interest coverage of 2.5x
v) Security cover of 2.0x to be maintained at all times in relation to the debentures
vi) Any loan from parent to be subordinated to the debentures

Note: Debt includes long term and short term.\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\tFor Hella:  Maximum total outside liabilities/TNW of 3.0x

All the above covenants shall be tested on quarterly basis on 30 June, 30 September, 31 December, 31 March
^TNW will be calculated as per the below formula
Equity capital + other reserve+ convertible preference share issued to Hella + unsecured loan extended by Hella
* For clarification, EBITDA means EBITDA pertaining to previous 12 months as disclosed in audited financials.
 \r\n\t\t\t

\r\n\t\t
\r\n\t\r\n","complexityLevelOfInstruments":"\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n
\r\n Instrument Type\r\n \r\n Complexity Indicator\r\n
\r\n Fund-based working capital\r\n limit\r\n \r\n Low\r\n
\r\n Non-convertible debentures \r\n \r\n Low\r\n
\r\n Non-fund-based working\r\n capital limit\r\n \r\n Low\r\n
\r\n Term loan\r\n \r\n Low\r\n
\r\n working capital limit\r\n \r\n Low\r\n
\r\n\r\n
For details on the\r\ncomplexity level of the instruments, please visit https://www.indiaratings.co.in/complexity- indicators.

\r\n","nonCooperationwithPreviousRatingAgency":"

Not applicable

","descriptionAboutIndiaRating":"\r\n

India Ratings and Research (Ind-Ra) is India's SEBI registered 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.

\r\n

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

\r\n

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

\r\n

Ind-Ra is a 100% owned subsidiary of the Fitch Group.

","industry":"Other Construction Materials","industryName":null,"isRACPriority":true,"fileName":null,"isAWCTriggerCompleted":false,"isRACMailSent":true,"racMailSentDateTime":"2025-03-04T10:14:44","primaryAnalyst":null,"priority":null,"primaryAnalystName":"Siddharth Rego","primaryAnalystDesignation":"Associate Director","primaryAnalystCompanyName":"India Ratings and Research Pvt Ltd","primaryAnalystAddress":"Wockhardt Towers, 4th Floor, West Wing, Bandra Kurla Complex, Bandra East,Mumbai - 400051","primaryAnalystContactNumber":"+91 22 40356115","secondaryAnalystName":"Raj Inani","secondaryAnalystDesignation":"Analyst","secondaryAnalystCompanyName":null,"secondaryAnalystContactNumber":"+91 22 40001783","tertiaryAnalystName":null,"tertiaryAnalystDesignation":null,"tertiaryAnalystCompanyName":null,"tertiaryAnalystContactNumber":null,"additionalAnalystName":null,"additionalAnalystDesignation":null,"additionalAnalystCompanyName":null,"additionalAnalystContactNumber":null,"chairpersonName":null,"chairpersonDesignation":null,"chairpersonCompanyName":null,"chairpersonContactNumber":null,"mediaRelationName":"Ameya Bodkhe","mediaRelationDesignation":"Marketing Manager","mediaRelationCompanyName":null,"mediaRelationContactNumber":"+91 22 40356121","issuerInformationStatus":null,"detailedRationaleOfRatingAction":"\r\n\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\r\n\t\r\n\t\t
\r\n\t\t\t

\r\n\t\t\t\tThe Negative Outlook continues to reflect the possibility of weakening of RDC’s financial flexibility due to the current stretched credit and liquidity profile of its parent, Hella. The ratings continue to reflect RDC’s strong market position in the ready mix concrete (RMC) segment with a diversified geographical presence, robust operating performance and comfortable credit metrics. However, the ratings continue to be constrained by the inherent receivable management risk and the competitive nature of the RMC business.

\r\n\t\t
\r\n\t\r\n","nonCooperationByTheIssuer":null,"limitationsRegardingInformationAvailability":null,"listOfKeyRatingDrivers":"\r\n\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\r\n\t\r\n\t\t
\r\n\t\t\t

\r\n\t\t\t\tStrengths\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\t-Strong market position with diversified geographical presence
-Operating performance likely to remain strong in FY26
-Capacity expansion to drive near-to-medium growth; credit metrics to remain comfortable\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\t \r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\t Weaknesses\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\t- Financial flexibility could weaken; continued moderate linkages with parent
- Increase in debtors; working capital management remains key
- High competitive intensity\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\t \r\n\t\t\t

\r\n\t\t
\r\n\t\r\n","liquidity":"\r\n\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\r\n\t\r\n\t\t
\r\n\t\t\t

\r\n\t\t\t\tAdequate: RDC has INR1.1 billion and INR1 billion of scheduled repayments on its contracted debt due in FY25 and FY26, respectively, which are likely to be met comfortably by EBITDA generation. The cash flow from operations increased to INR1.1 billion in FY24 (FY23: INR0.4 billion; FY22: INR0.4 billion) given the increase in EBITDA. Although RDC has been generating positive cash flow from operations, its free cash flow has been negative FY19-FY24, due to continuous capex and moderate cash flow from operations. The free cash flow is likely to remain negative in FY25, owing to the increase in working capital and capex requirements. The company has enhanced its fund-based limits by INR0.7 billion in 9MFY25 from INR1.2 billion. RDC’s utilisation of fund-based limits remained moderate at around 85% in the 12 months ended December 2024. The cash and equivalents stood at INR0.2 billion at 9MFYE25 (FYE24: INR0.3 billion; FYE23: INR0.02 billion). Any event at the entity or the parent that can affect the financial flexibility of RDC will remain a key rating monitorable.
 \r\n\t\t\t

\r\n\t\t
\r\n\t\r\n","disclosuresForCERating":"\r\n\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\r\n\t\r\n\t\t
\r\n\t\t\t

\r\n\t\t\t\t1) UNSUPPORTED RATING
Ind-Ra has affirmed the unsupported rating at ‘IND A-’/Negative.

The unsupported rating is arrived at without factoring in the explicit credit enhancement (CE). It helps in understanding the extent of CE factored into the instrument rating.

The analytical approach, key rating drivers, liquidity and rating sensitivities for the unsupported rating are the same as that for the NCD ratings.  \r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\t2) INSTRUMENT COVENANTS
Refer to Annexure II\r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\t3) ADEQUACY OF CE 
Hella has provided a corporate guarantee for RDC’s NCDs. Since the guarantee does not meet Ind-Ra’s requirement of the presence of a pre-default clause for guarantee invocation and a well-defined payment mechanism, it has not been factored as an explicit CE and hence the CE suffix has not been added to the rating of NCDs.
 \r\n\t\t\t

\r\n\t\t
\r\n\t\r\n","disclosuresForProvisionalRating":null,"anyOtherInformation":"\r\n\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\t\r\n\t\r\n\t\r\n\t\t
\r\n\t\t\t

\r\n\t\t\t\tCorporate Governance; Update on Income Tax Search:  RDC’s five-member board includes the two co-founders of Hella (Aaditya Sharda and Souvik Sengupta), two independent directors and an executive managing director. The operations and treasury are managed by the individual teams with oversight from the management and board. Decisions on capex and funding, among others, are approved by the company’s finance committee before being presented to the board. The premises of RDC were searched by the income tax department in March 2022 but no demand was raised by the department for RDC as informed by the management. \r\n\t\t\t

\r\n\t\t\t

\r\n\t\t\t\tHealthy Standalone Performance: On a standalone basis, RDC’s revenue was INR19,607 million (FY23: INR14,345 million; FY22: INR9,872 million), EBITDA was INR1,569 million (INR1,149 million; INR824 million) and interest coverage was 2.8x ( 3.1x, 3.2x).
 \r\n\t\t\t

\r\n\t\t
\r\n\t\r\n","keyFinancialsIndicators":"
Particulars (Consolidated) FY24 FY23
Revenue (INR million) 20,305 14,568
EBITDA (INR million) 14,568 1,210
EBITDA margin (%) 8.6 8.3
Interest coverage (x) 2.9 3.2
Net leverage (including discounted letter of credit’s) (x) 2.15 2.47
Source: Ind-Ra, RDC
","correctionInPreviousRatingActionCommentary":null,"showLoginToContinueReading":"N","racDisclosure":null,"temp1":null,"temp2":null,"totalRowsCount":null,"totalPageCount":null,"ratingCriteriaList":[{"criteriaReportID":"173","title":"Evaluating Corporate Governance","documentPath":"https://www.indiaratings.co.in/data//Uploads/CriteriaReport/2023/Evaluating Corporate Governance.pdf"},{"criteriaReportID":"180","title":"Short-Term Ratings Criteria for Non-Financial Corporates","documentPath":"https://www.indiaratings.co.in/data//Uploads/CriteriaReport/2023/Short-Term Ratings Criteria for Non-Financial Corporates.pdf"},{"criteriaReportID":"181","title":"Corporate Rating Methodology","documentPath":"https://www.indiaratings.co.in/data//Uploads/CriteriaReport/2023/Corporate Rating Methodology.pdf"},{"criteriaReportID":"199","title":"The Rating Process","documentPath":"https://www.indiaratings.co.in/data//Uploads/CriteriaReport/2024/The Rating Process-Aug.pdf"},{"criteriaReportID":"201","title":"Policy for Credit Enhanced (CE) Ratings","documentPath":"https://www.indiaratings.co.in/data//Uploads/CriteriaReport/2024/Policy for Credit Enhanced (CE) Ratings-Oct.pdf"}]}]