Ind-Ra assigns PRESL BBB-minus with stable outlook

Mumbai (Maharashtra) [India], January 12 (ANI): India Ratings and Research (Ind-Ra) has assigned Punjab Renewable Energy Systems Pvt Ltd (PRESPL) a long-term issuer rating of BBB-minus with a stable outlook.
The company operates in biomass industry which is a carbon-neutral source of energy. It is supported by various government initiatives for reducing carbon emissions and lowering the dependence on non-renewable resources.
Its consolidated revenue was modest despite improving to Rs 34.2 crore in FY20 due to the improved sale of steam which constituted 69 per cent of total revenue. During 7M FY21, the company achieved a revenue of Rs 32 crore with 40 per cent contribution from the sale of steam.
Ind-Ra said it expects the revenue to improve significantly year-on-year in FY21 mainly on the account of the build, own, operate and transfer (BOOT) contracts signed in FY20, additional operation and maintenance (O&M) contracts for supply of steam and expansion of the supply chain management segment.
The revenue is likely to improve further to over Rs 200 crore in FY22 due to starting of seven briquette manufacturing units which will contribute to over 50 per cent of the projected revenue.
Moreover, said Ind-Ra, the contracts under BOOT -- which define a fixed offtake for the next 10 years and fixed-revenue contracts under the O&M model provide a revenue visibility of Rs 150 crore to 180 crore in FY22.
The successful implementation of the projects and the achievement of growth from new projects remain key rating monitorables, it added. (ANI)