Key Metrics of Sadbhav Engineering Limited
About Sadbhav Engineering Limited
Sectors
Company details
- Registered office
- Sadbhav House, Opp-law Garden Police Chowki, Ellisbridge, Ahmedabad, In-gj, 380006
- Listed
- NSE: SADBHAV · ₹6.72
Operational Areas of Sadbhav Engineering Limited
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
Sign in to continue See plans & pricingFiling compliance
Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
Sign in with access to company financials to review vendor evidence.
Credit ratings
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 30 Jun 2023 | CARE | Other | — | — | — | — | View |
| 11 May 2023 | CARE | Revised (from C) | D | — | Negative | ₹45.0 Cr | View |
| 07 Sep 2022 | CARE | Revised (from B+) | C | — | Negative | ₹45.0 Cr | View |
| 02 Jun 2022 | CARE | Watch (from BB+) | B+ | — | Negative | ₹135 Cr | View |
| 07 Oct 2021 | CARE | Watch (from BBB) | BB+ | A4 | Negative | ₹157 Cr | View |
| 14 Apr 2021 | CARE | Watch | BBB | A3+ | Negative | ₹15,736 Cr | View |
| 25 Mar 2021 | CARE | Watch (from BBB+) | BBB | A3+ | Negative | ₹150 Cr | View |
| 23 Sep 2020 | CARE | Watch | BBB+ | A3+ | Stable | ₹5,506 Cr | View |
| 15 Sep 2020 | CARE | Other | — | — | — | — | View |
| 15 Sep 2020 | CARE | Other | — | — | — | — | View |
| 23 Mar 2020 | CARE | Watch | A- | A2+ | Stable | ₹5,864 Cr | View |
| 07 Jan 2020 | CARE | Watch | A | A1 | Developing | ₹610 Cr | View |
| 30 Oct 2019 | CARE | Other | — | — | — | — | View |
| 10 Jul 2019 | CARE | Watch | A | A1 | — | ₹6,760 Cr | View |
| 04 Apr 2019 | CARE | Assigned | A | — | Stable | ₹100 Cr | View |
| 07 Mar 2019 | CARE | Reaffirmed | A | A1 | Stable | ₹2,722 Cr | View |
| 20 Feb 2019 | CARE | Reaffirmed (from A+) | A | A1 | Stable | ₹6,576 Cr | View |
Credit strengths (CARE, May 2023)
+ Established track record of the Sadbhav group in Indian construction sector
SEL has a track record of over two decades in the Indian road construction sector. SEL has successfully completed construction of more than 8,400 lane km of road projects since its establishment. GoI initiatives to improve prospects of road construction The GoI, through the NHAI, has taken various steps to improve the prospects of the road segment. These include premium rescheduling for stressed projects, bidding of tenders only after 80% of land has been acquired for the project, release of 75%
+ GoI initiatives to improve prospects of road construction
The GoI, through the NHAI, has taken various steps to improve the prospects of the road segment. These include premium rescheduling for stressed projects, bidding of tenders only after 80% of land has been acquired for the project, release of 75% of arbitration award against submission of bank guarantee, and 100% exit within six months from the COD. NHAI has also made favourable changes in the clauses of the model concession agreement (CA) of HAM projects and linked interest annuities to the
+ Liquidity: Stretched
Gross current asset days elongated to 637 days during FY21 owing large proportion of receivables for ongoing HAM projects. Stretched current assets levels, sustained delay in scaling up of operations owing to large proportion of slow -moving order book and cost overrun in ongoing HAM projects are the prominent reasons for the stretched liquidity. Liquidity position was earlie r expected to ease out gradually with improvement in the pace of execution and receipt of large cash inflow of around Rs.
+ Environment, social, and governance (ESG) risks: Not Applicable
Applicable Criteria Policy in respect of non-cooperation by issuers Policy on default recognition Factoring Linkages Parent Sub JV Group Financial Ratios - Non Financial Sector Liquidity Analysis of Non-Financial sector entities Rating Outlook and Credit Watch
+ Brief Financials - SEL Standalone (Rs. crore) 31-03-2021 (A) 31-03-2022 (A) 9MFY23 (UA)
Total operating income 1,717 1,322 750 PBILDT 305 -439 90 PAT 41 -716 -77 Overall gearing (times) 0.75 0.68 NA Interest coverage (times) 1.61 -2.34 0.73 A: Audited; UA: Unaudited; NA: Not Available. Note: ‘the above results are latest financial results available’
+ Total operating income 1,717 1,322 750
PBILDT 305 -439 90 PAT 41 -716 -77 Overall gearing (times) 0.75 0.68 NA Interest coverage (times) 1.61 -2.34 0.73 A: Audited; UA: Unaudited; NA: Not Available. Note: ‘the above results are latest financial results available’ Brief Financials- Sadbhav group# (Rs. crore) 31-03-2021 (A) 31-03-2022 (A) 9MFY23 (UA)
Credit challenges
− Sustained delay in the execution of various HAM projects
As against the expectation of gradual ramp-up in the pace of execution, it continued to remain slow leading to delay in all its on- going HAM projects. The physical progress of works as on March 31, 2022 in respect of Sadbhav Vidarbha Highway Private Limited (SVHPL), Sadbhav Kim Expressway Private Limited (SKEPL) and Sadbhav Nainital Highway Private Limited (SNHPL) continued to remain delayed as mentioned by statutory auditor. In addition, NHAI has also issued notice of intention to terminate CA
− Inordinate delay in receipt of various stake sale proceeds
During last review, materialization of various fund-raising plans including ARIL, MBCNL and stake sale in various operational HAM projects was envisaged to improve the liquidity position of the group. The stake sale transaction in ARIL was expected to be concluded by Q4FY22. However, the same is still awaited despite receipt of NOC from Authority during November 2020. As 1Complete definition of the ratings assigned are available at www.careedge.in and other CARE Ratings Ltd.’s publications
− Key Strengths
Established track record of the Sadbhav group in Indian construction sector SEL has a track record of over two decades in the Indian road construction sector. SEL has successfully completed construction of more than 8,400 lane km of road projects since its establishment. GoI initiatives to improve prospects of road construction The GoI, through the NHAI, has taken various steps to improve the prospects of the road segment. These include premium
− GoI initiatives to improve prospects of road construction
The GoI, through the NHAI, has taken various steps to improve the prospects of the road segment. These include premium rescheduling for stressed projects, bidding of tenders only after 80% of land has been acquired for the project, release of 75% of arbitration award against submission of bank guarantee, and 100% exit within six months from the COD. NHAI has also made favourable changes in the clauses of the model concession agreement (CA) of HAM projects and linked interest annuities to the
Could lead to an upgrade
• Fructification of fund -raising plans leading to substantial debt rationalisation and improv ement in the
Could lead to a downgrade
• Inability to scale up operations while realizing sizeable stretched current assets • Delay in materialization of fund-raising plans stretching the
Agency-reported financials (CARE, 11 May 2023)
| Metric | 9MFY23 |
|---|---|
| Total operating income | ₹750 Cr |
| PBILDT | ₹90.00 Cr |
| PAT | ₹-77.00 Cr |
| Overall gearing (times) | — |
| Interest coverage (times) | 0.73× |
| EBITDA margin | 12.0% |
| Implied interest cost (EBITDA ÷ coverage) | ₹123 Cr |
| PAT margin | −10.3% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| ISSUER continues to remain under ISSUER NOT Non-Convertible NOT Debentures | Debentures & bonds | — | ₹45.0 Cr | — | D | Revised | CARE |
Debt instruments
| ISIN | Instrument | Type | Coupon | Issued | Maturity | Amount | Rating | Status |
|---|---|---|---|---|---|---|---|---|
| INE226H07072 | Debentures Non , | Debentures & bonds | — | — | — | — | D | Not stated |
| INE226H07064 | Debentures Non . Under Credit | Debentures & bonds | 9.00% | — | — | ₹48.0 Cr | A | Not stated |
| INE226H08013 | Debentures Non September, Under Credit | Debentures & bonds | 9.90% | — | — | ₹190 Cr | A | Not stated |
| INE226H07080 | Convertible , | Debentures & bonds | 9.00% | 21 Jun 2018 | 22 Jun 2023 | ₹45.0 Cr | D | Matured |
| — | Debt Non convertible Under Credit | Subordinated debt | 11.50% | 15 Apr 2019 | 15 Jul 2020 | ₹100 Cr | A | Matured |
| — | — | Subordinated debt | 11.50% | 15 Apr 2019 | 15 Jul 2020 | ₹100 Cr | A | Matured |
| INE226H07098 | Jun Jun | Debentures & bonds | 9.00% | — | — | — | — | Withdrawn |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | — | Withdrawn |
| Commercial Paper | — | Withdrawn |
| Commercial Paper (Carved out) | — | Withdrawn |
| Commercial Paper (Standalone) | — | Withdrawn |
| Long Term | — | Withdrawn |
| LT/ST | — | Withdrawn |
| Non Convertible Debentures | — | Withdrawn |
| Non-convertible Debenture/Subordinate Debt | — | Withdrawn |
| Term loan | — | Withdrawn |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | Last default 11 May 2023 |
| Issuer cooperation | Cooperating |
| Credit enhancement | BBB · Credit enhancement (external support) (CARE, Apr 2021) |
| Next action stable or better (model) | 41% |
| Information on file | 67% · missing: Capex / investment plans, Auditor details, Recent rating review (last 15 months) |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 41% chance the next rating action is stable or better
What happened, step by step
- Mar 2021 — Full repayment of NCD
- Oct 2021 — ₹991 cr raised through term loans
“Sadbhav Infrastruct ure Project Ltd (SIPL) has raised Rs.991 crore in Q1FY22 through sale of InvIT units and asset - backed long term debt.”
- Mar 2021 — Full repayment of NCD
- Oct 2021 — ₹991 cr raised
“Detailed description of the key rating drivers Key Rating Weakness: Liquidity: Stretched liquidity position despite raising substantial long-term funds SIPL had raised Rs.991 crore during Q1FY22 through sale of InvIT units and assets bac ked debt.”
- Mar 2021 — ₹694 cr raised through equity
- Mar 2021 — Full repayment of NCD
“Out of which equity to the tune of Rs.694 crore is already infused till August 2020 which reduces funding risk to an extent.”
- Oct 2019 — ₹300 cr raised through preference shares
- Sep 2020 — Full repayment of NCD
“During FY11, SEL diluted 22.22% of its stake through issue of fresh equity of Rs.300 crore and compulsory convertible cumulative preference shares (CCCPS) of Rs.100 crore to private equity (PE) investors.”
Rated limits by facility
Timeline
From the report
Press Release indicated by the management, ARIL has received cash inflow of around Rs.98 crore during Q1FY23 towards payment compensation of exempted cars from the authority, majority of which have been used towards working capital requirements.
From the report
Liquidity position was earlie r expected to ease out gradually with improvement in the pace of execution and receipt of large cash inflow of around Rs.1100 crore in H1FY22 to shore up liquidity.
From the report
The revision in rating assigned to the bank facilities of Sadbhav Engineering Limited (SEL) takes into account the on-going delays in the debt servicing of sanctioned banking facilities.
From the report
As indicated by the management, ARIL has received cash inflow of around Rs.98 crore during Q1FY23 towards payment compensation of exempted cars from the authority, majority of which have been used towards working ca pital requirements.
From the report
Liquidity position was earlier expected to ease out gradually with improvement in the pace of exec ution and receipt of large cash inflow of around Rs.1100 crore in H1FY22 to shore up liquidity.
From the report
As indicated by the management, ARIL has received cash inflow of around Rs.98 crore during Q1FY23 (refers to the period from April 01 to June 30) towards payment compensation of exempted cars from the authority, majority of which have been used towards working capital requirements.
From the report
Liquidity position was earlier expected to ease out gradually with improvement in the pace of execution and receipt of large cash inflow of around Rs.1100 crore in H1FY22 to shore up liquidity.
From the report
Sadbhav Infrastruct ure Project Ltd (SIPL) has raised Rs.991 crore in Q1FY22 through sale of InvIT units and asset - backed long term debt.
From the report
Detailed description of the key rating drivers Key Rating Weakness: Liquidity: Stretched liquidity position despite raising substantial long-term funds SIPL had raised Rs.991 crore during Q1FY22 through sale of InvIT units and assets bac ked debt.
From the report
Proceeds of stake sale has been utilized for the prepayment of NCD of Rs.686 crore including prepayment premium, repayment of bridge loans of Rs.293 crore, which led to improvement in overall gearing (on combined basis) from 0.86 times as on March 31, 2019 to 0.57 times as on March 31, 2020.
From the report
TOL/TNW improved from 1.18 times as on March 31, 2019 to 0.90 times as on March 31, 2020 due to prepayment of NCDs.
From the report
Out of which equity to the tune of Rs.694 crore is already infused till August 2020 which reduces funding risk to an extent.
From the report
Balance Rs. 428 crore is envisagedto be infused in FY21-FY22.
From the report
Sadbhav group has repayment obligations of around Rs.359 crore during FY22.
From the report
Proceeds of stake sale has been utilized for the prepayment of NCD of Rs.686 crore including prepayment premium, repayment of bridge loans of Rs.293 crore, which led to improveme nt in overall gearing (on combined basis) from 0.86 times as on March 31, 2019 to 0.57 times as on March 31, 2020 .
From the report
TOL/TNW improved from 1.18 times as on March 31, 2019 to 0.90 times as on March 31, 2020 due to prepayment of NCDs.
From the report
Out of which equity to the tune of Rs.694 crore is already infused till August 2020 which reduces funding risk to an extent.
From the report
Balance Rs. 428 crore is envisaged to be infused in FY21 -FY22.
From the report
SEL has availed moratorium on bank loansfrom certain lendersas per RBI scheme from April 2020 to August 2020.
From the report
Sadbhav group has repayment obligations of around Rs.140 crore during FY21 and Rs.359 crore during FY22.
From the report
Press Release Sadbhav Engineering Limited September 15, 2020 Ratings Amount 1 Facilities Ratings Rating Action (Rs. crore) Commercial Paper (Carved out of - - Withdrawn sanctioned working capital limits) Details of Instruments in Annexure-1 Detailed Rationale, Key Rating Drivers and Detailed description of the key rating drivers CARE has withdrawn the rating assigned to the carved out Commercial Paper (CP) issue of Sadbhav Engineering Limited (SEL) with immediate effect, as there is no outstanding CP as on September 15, 2020.
From the report
Stable / CARE A2+ ) entire equity stake in eight out of nine operational road special purpose vehicles (SPVs) to InvIT portfolio of IndInfravit Trust (IndInfravit), receipt of significant portion of the envisage d consideration (Rs.1,459 crore in cash out of total cash proceeds of Rs.1,908 crore) and emergence of substantial clarity on the end use of stake sale proceeds from Sadbhav group’s management.
From the report
As of March 19, 2020, SIPL has received cash proceeds of Rs.1,459 crore in cash in three tranches and Rs.724 crore in form of InvIT units equivalent to 10% stake in IndInfravit Trust for these eight SPVs.
From the report
Further, Sadbhav group on combined basis reported PAT of Rs.59 crore during 9MFY20 as against PAT of Rs.137 crore during 9MFY19. 2 CARE Ratings Limited Press Release Increase in the propensity to support their under construction HAM portfolio during their initial phase; albeit termination of three HAM projects has reduced the upfront equity commitment As on February 29, 2020, Sadbhav group has infused around Rs. 650 crore as equity commitments in under -construction HAM SPVs, while it further has equity commitments of Rs.470 crore spread over FY21 & FY22 .
From the report
SIPL had availed bridge loan for meeting its interim working capital requirement, debt servicing and equity infusion in these HAM projects till receipt of stake sale proceeds, which it has repaid post receipt of stake sale proceeds.
From the report
SIPL has already infused around Rs.600 crore as on December 31, 2019 in its on-going HAM projects.
From the report
SIPL had also availed bridge loan for meeting its interim working capital requirement, debt servicing and equity infusion in HAM projects till receipt of stake sale proceeds , which it has repaid post receipt of stake sale proceeds.
From the report
Till March 20, 2020, SIPL has received sale consideration for the transaction of Rs.1,459 crore in cash and balance Rs.724 crore in the form of units equivalent to 10% stake in IndInfravit.
From the report
SIPL has already infused Rs.593 crore as on September 30, 2019 in eight on-going HAM projects.
From the report
SIPL has availed bridge loan for interim equity infusion in HAM projects till receipt of stake sale proceeds.
From the report
During FY11, SEL diluted 22.22% of its stake through issue of fresh equity of Rs.300 crore and compulsory convertible cumulative preference shares (CCCPS) of Rs.100 crore to private equity (PE) investors.
From the report
During September 2015, SIPL raised Rs.425 crore through Initial Public Offer (IPO) of its equity shares. 1 CARE Ratings Limited Press Release For previous press release of SEL and SIPL please refer: www.careratings.com Status of non-cooperation with previous CRA: Not applicable Any other information: Not applicable Rating History for last three years: Please refer Annexure-1 Annexure-1: Rating History of last three years – SEL Sr.
From the report
SIPL has already infused Rs.533 crore as on June 30, 2019 in eight ongoing projects.
From the report
Further, SIPL is expected to receive cash of around Rs.1,900 crore from the proposed stake sale transaction which, as articulated by the management, would primarily be used to rationalise the debt at Sadbhav group level along with for meeting future equity commitments in its under-construction HAM SPVs.
From the report
Furthermore, sanctioned loan facilities of MBCNL has an option of top-up loan up to Rs.520 crore wherein Rs.150 crore has already been drawn till December 2018 and up streamed to SIPL while balance amount is eligible for disbursement in tranches upon debt syndication and achievement of targeted revenue for consecutive three months.
From the report
However, in case of delay in debt syndication of large portion of sanctioned top up loan of MBCNL, reliance on debt guaranteed by SIPL can increase.
From the report
Furthermore, sanctioned loan facilities of MBCNL has an option of top-up loan up to Rs.520 crore wherein Rs.150 crore has already been drawn till December 2018 and up streamed to SIPL while balance amount is eligible for disbursement in tranches upon debt syndication and achievement of targeted revenue for consecutive three months.
From the report
However, in case of delay in debt syndication of large portion of sanctioned top up loan of MBCNL, reliance on debt guaranteed by SIPL can increase.
From the report
Furthermore, sanctioned loan facilities of MBCNL has an option of top-up loan up to Rs.520 crore wherein Rs.150 crore has already been drawn till December 2018 and up streamed to SIPL while balance amount is eligible for disbursement in tranches upon debt syndication and achievement of targeted revenue for consecutive three months.
From the report
However, in case of delay in debt syndication of large portion of sanctioned top up loan of MBCNL, reliance on debt guaranteed by SIPL can increase.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Sadbhav Engineering Limited
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Larsen & Toubro |
Capital Goods & Power Equipment · Heavy Engineering & Capital Goods | larsentoubro.com | 1938 | Mumbai, India |
 Thermax |
Capital Goods & Power Equipment · Heavy Engineering & Capital Goods | thermaxglobal.com | 1980 | Pune, India |
 Blue Dart Express |
Outlets operated by Blue Dart Express. | bluedart.com | 1983 | Mumbai, India |
| H.G. INFRA ENGINEERING LIMITED (PART IX) | Machine Tools & Industrial Machinery · Heavy Engineering & Capital Goods | — | — | Jodhpur, Rajasthan, India |
 Tata Hitachi Construction Machinery Company |
Machine Tools & Industrial Machinery · Heavy Engineering & Capital Goods | tatahitachi.co.in | — | India |
 Kirloskar Brothers |
Capital Goods & Power Equipment · Heavy Engineering & Capital Goods | kirloskarpumps.com | 1888 | Pune, India |
 Sansera Engineering Limited |
Machine Tools & Industrial Machinery · Heavy Engineering & Capital Goods | sansera.in | — | Bangalore, Karnataka, India |
 Action Construction Equipment Limited |
Fertilisers, Seeds & Crop Protection · Agriculture & Agri-Inputs | ace-cranes.com | 2009 | Palwal, India |
 AJAX Engineering |
Commercial Vehicles & Buses · Automobile Manufacturers | ajax-engg.com | 1992 | Bangalore, India |
| Il&FS Engineering And Construction Company Limited | · Construction | — | — | Hyderabad, Telangana, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Principal business activities and related-party transactions are read from MGT-7 and AOC-4 filings.
Filings
No filings on record yet.