Key Rating Drivers & Detailed Description

Strengths:

Strong support from the parent: The company benefits from the operational and financial support received from BEHPL. BEHPL/ Bharti Group should continue to hold a 100% stake in, and complete management control over, BEL throughout the tenor of the rated debt. The Bharti group is likely to extend managerial as well as need-based and timely financial support to BEL.

Robust financial flexibility: Financial flexibility is driven by the healthy reputation of the promoters. The Bharti group has a well-established management track record. BEHPL, BEL and BTL together have gross debt of about Rs 17,825 crore as on July 19, 2023, signifying strong cover. It is expected that strong cover will continue to be maintained on a sustained basis considering combined net debt of BTL, BEHPL and BEL throughout the tenure of the rated debt.

Weakness:

Exposure to market risks: Financial flexibility, in terms of the cover available, will likely depend upon the share price of BAL. Any increase in systemic risks and a sharp decline in the share price are rating sensitivity factors.

Key Financial Indicators

NM: Not meaningful as operating profit is negative

*Provisional

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