November 06, 2024

ITD Cementation India Limited: Update on Material Event

Summary of rating(s) outstanding

Previous Rated Amount Current Rated Amount

Instrument* Rating Outstanding
(Rs. crore) (Rs. crore)
Long-term – Fund-based – Term
292.26 292.26 [ICRA]A (Stable)
loans
Long-term – Fund-based –
750.00 750.00 [ICRA]A (Stable)
Working capital
Long-term/Short-term – Non-fund
5,930.00 5,930.00 [ICRA]A (Stable)/ [ICRA]A1
based limits
Total 6,972.26 6,972.26
*Instrument details are provided in Annexure-I

Rationale

Material event
On October 25, 2024, ITD Cementation India Limited (ITD) announced on the Bombay Stock Exchange regarding its promoter,
Italian-Thai Development Public Company Limited (holding 46.64% of the paid-up equity share capital of the company),
entering into a share purchase agreement with Renew Exim DMCC (part of Adani Group) for entire stake of the company at a
price of Rs. 400 per share, translating to Rs. 3,204 crore for the entire deal. This acquisition comes alongside an open offer by
Renew Exim to acquire an additional 26% stake in ITD Cementation from public shareholders at Rs. 571.68 per share,
amounting to Rs. 2,553 crore, if fully subscribed.

Impact of the material event

ICRA has taken note of the proposed acquisition of shares of ITD by Renew Exim DMCC. ICRA will continue to monitor the
developments in the company after the new management takes over and will take appropriate action as and when required.

Please refer to the following link for the previous detailed rationale that captures the key rating drivers and their description,
liquidity position, rating sensitivities : Click here.

Analytical approach

Analytical Approach Comments

Corporate Credit Rating Methodology
Applicable rating methodologies
Construction
Parent/Group support Not Applicable
For arriving at the ratings, ICRA has considered the consolidated financials of ITD
Cementation India Limited. As on March 31, 2024, the company had three subsidiaries and
Consolidation/Standalone
four JVs, that are enlisted in Annexure I. Further, the risk assessment of non-fund based
limits of JVs guaranteed by ITD has been factored in while arriving at the ratings.

About the company

Incorporated in June 1978, ITD is a public limited company involved in providing design, engineering, procurement and
construction services for infrastructure projects in India. It has done a variety of work, which includes piling, foundations,
ground improvement, geotechnical and specialist engineering, marine structures and ports. It has undertaken transportation

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 projects including highways and bridges, hydroelectric projects such as tunnels and dams, industrial works and urban
infrastructure projects. ITD is a part of the Thailand-based ITD Thai Group.

Key financial indicators (audited)

ITD Consolidated FY2023 FY2024 Q1FY2025*

Operating income (Rs. crore) 5,137.9 7,758.6 2,381.5
PAT (Rs. crore)** 90.5 258.4 100.1
OPBDIT/OI 8.3% 10.3% 9.3%
PAT/OI 1.8% 3.3% 4.2%
Total outside liabilities/Tangible net worth (times) 3.0 2.9 -
Total debt/OPBDIT (times) 1.8 1.1 -
Interest coverage (times) 2.6 3.7 4.2
Source: Company, ICRA Research; * Provisional numbers; ** does not include share of profit/loss from joint venture, All ratios as per ICRA’s calculations
PAT: Profit after tax; OPBDIT: Operating profit before depreciation, interest, taxes and amortisation; NA- Not available

Status of non-cooperation with previous CRA: Not applicable

Any other information: None

Rating history for past three years

Current (FY2025) Chronology of rating history for the past 3 years

FY2025 FY2024 FY2023 FY2022

Instrument Type Amount
Rated Nov 06,
Date Rating Date Rating Date Rating Date Rating
(Rs. crore) 2024

Long-term- Long 29- [ICRA]A

Cash credit- Term [ICRA]A [ICRA]A 04-APR- [ICRA]A 24-JAN- [ICRA]A 07-OCT-
750.00 APR- (Stable
Fund-based (Stable) (Stable) 2023 (Stable) 2023 (Stable) 2021
2024 )
Long-term / Long [ICRA]A [ICRA]A
29- [ICRA]A [ICRA]A [ICRA]A
Short-term- Term (Stable) 04-APR- 24-JAN- 07-OCT- (Stable
5930.00 APR- (Stable)/ (Stable)/ (Stable)/
Others-Non- /Short /[ICRA]A 2023 2023 2021 )/[ICRA
2024 [ICRA]A1 [ICRA]A1 [ICRA]A1
fund based Term 1 ]A1
Long-term- Long 29- [ICRA]A
Term loan- Term [ICRA]A [ICRA]A 04-APR- [ICRA]A 24-JAN- [ICRA]A 07-OCT-
292.26 APR- (Stable
Fund-based (Stable) (Stable) 2023 (Stable) 2023 (Stable) 2021
2024 )

Complexity level of the rated instrument

Instrument Complexity Indicator

Long-term – Fund-based – Term loans Simple
Long-term – Fund-based – Working capital Simple
Long-term/Short-term – Non-fund based limits Simple

The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated.
It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's
credit rating. It also does not indicate the complexity associated with analyzing an entity's financial, business, industry risks or

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 complexity related to the structural, transactional, or legal aspects. Details on the complexity levels of the instruments, is
available on ICRA’s website: Click Here

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 Annexure-I: Instrument details

Instrument Date of Issuance / Coupon Maturity Amount Rated

ISIN No Current Rating and Outlook
Name Sanction Rate Date (RS Crore)
November
NA Term loan April 2015 - 292.26 [ICRA]A (Stable)
2027
Fund-based
NA - - - 750.00 [ICRA]A (Stable)
Working capital
Letter of
NA credit/Bank - - - 5,930.00 [ICRA]A (Stable)/ [ICRA]A1
guarantee
Source: Company

Please click here to view details of lender-wise facilities rated by ICRA

Annexure-II: List of entities considered for consolidated analysis

Company Name ITD Ownership Consolidation Approach

ITD Cementation Projects India Limited 100.00% Full Consolidation
ITD Cem India JV 80.00% Full Consolidation
ITD Cem-Maytas Consortium 95.00% Full Consolidation
ITD - ITD Cem JV 49.00% Consolidated using equity method
ITD – ITD Cem JV (Consortium of ITD - ITD Cementation) 40.00% Consolidated using equity method
CEC-ITD Cem-TPL JV 60.00% Consolidated using equity method
ITD Cem-BBJ Joint Venture 51.00% Consolidated using equity method
ITD Cementation India Limited -Transrail Lighting Limited
72.66% Consolidated using equity method
JV
Source: ITD annual report

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 ANALYST CONTACTS
Ashish Modani Suprio Banerjee
+91 22 6169 3300 +91 22 6114 3443
ashish.modani@icraindia.com supriob@icraindia.com

Chintan Dilip Lakhani Rohit Agarwal

+91 22 6169 3345 +91 22 6169 3329
chintan.lakhani@icraindia.com rohit.agarwal@icraindia.com

RELATIONSHIP CONTACT
L. Shivakumar
+91 22 6114 3406
shivakumar@icraindia.com

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Ms. Naznin Prodhani
Tel: +91 124 4545 860
communications@icraindia.com

Helpline for business queries

+91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)

info@icraindia.com

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Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company,
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