Rating Rationale
May 19, 2023 | Mumbai
Tata Motors Limited
Long-term rating upgraded to 'CRISIL AA/Stable'; short-term rating reaffirmed
 
Rating Action
Total Bank Loan Facilities RatedRs.12500 Crore
Long Term RatingCRISIL AA/Stable (Upgraded from 'CRISIL AA-/Stable')
Short Term RatingCRISIL A1+ (Reaffirmed)
 
Rs.500 Crore Non Convertible DebenturesCRISIL AA/Stable (Upgraded from 'CRISIL AA-/Stable')
Rs.500 Crore Non Convertible DebenturesCRISIL AA/Stable (Upgraded from 'CRISIL AA-/Stable')
Rs.2000 Crore Non Convertible DebenturesCRISIL AA/Stable (Upgraded from 'CRISIL AA-/Stable')
Rs.1000 Crore Short Term DebtCRISIL A1+ (Reaffirmed)
Rs.6000 Crore Commercial PaperCRISIL A1+ (Reaffirmed)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has upgraded its rating on the non-convertible debentures and long-term bank facilities of Tata Motors Limited (TML) to CRISIL AA/Stable from ‘CRISIL AA-/Stable’. The rating on the short-term bank facilities, short term debt and commercial paper has been reaffirmed at ‘CRISIL A1+’.

 

The rating action follows the significant improvement in the credit profile on account of improved operating performance in the second half of fiscal 2023 due to strong volume growth in Jaguar Land Rover (JLR)  and a stronger outlook over the medium term. Easing semiconductor supply constraints and company entering into a long-term supply agreement for chip supply has led to stronger revenue visibility. This has led to a sharp improvement in the financial profile. Adjusted net debt to EBITDA has reduced to around 1.9 times in fiscal 2023 as per CRISIL Ratings’ estimates against 2.7 times for fiscal 2022 and it is expected to further reduce to around 1-1.2x by FY24.

 

For fiscal 2023, JLR’s wholesale volume (excluding China JV) grew 9% y-o-y with a healthy demand for the Range Rover series and allocation of chips to higher margin products. JLR’s reached a volume of around 95,000 units in Q4FY23 as compared to average of 76,000 units in 9MFY23. JLR’s volume growth is expected to be strong at around 20% on-year in fiscal 2024 supported by a healthy order book position of over 2 lakh units and easing of supply side constraints. CRISIL believes that in case of global slowdown the impact will be limited in fiscal 2024 on JLR volumes given strong order back log, healthy demand and JLR’s premium positioning. With high operating leverage and on the back of significant reduction in cost and breakeven levels, JLR’s reported operating margins improved to 14.6% in Q4FY23 against 12.6% in Q4FY22 and are expected to remain healthy at 12% in fiscal 2024 despite moderating product mix and higher marketing costs. The improved profitability should support strong free cash generation and continued deleveraging over the medium term.

 

On the domestic front, the overall volumes are up by around 30% on-year driven by low base and continued strong performance in PV segment and cyclical recovery in the CV segment although steep commodity input price increases in the first half of fiscal 2023 have limited margin expansion. Prices, especially steel, have since softened, paving the way for improving profitability.

 

The demand in the domestic market remains strong with leadership position in the market share in the commercial vehicles segment along with reported market share improving to 13.5% in FY23 (FY22: 11.4%) in the passenger cars segment. The company also has a dominant presence in the domestic EV market with reported market share of 84% in fiscal 2023.

 

Overall, consolidated EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin has increased in fiscal 2023 to 9.7% against 9.1% in fiscal 2022 as per CRISIL Ratings’ adjusted figures, despite 1H 2023 operating performance remaining weak. Consolidated EBITDA margins were 7.3% in 1HFY23 due to lower JLR volumes and commodity inflation. However, EBITDA margins improved to 10.9% in 2HFY23 on account of improved volumes, favourable product mix in JLR, healthy domestic volumes and continued cost control offsetting the commodity inflation. 

 

During fiscal 2022, the company hived off the PV unit into a separate subsidiary, Tata Motors Passenger Vehicle Ltd, post receipt of approval from National Company Law Tribunal. Further, the passenger electric mobility business was hived off into a separate subsidiary, Tata Passenger Electric Mobility Ltd (TPEML). TML has already diluted 11-15% stake in TPEML to a global strategic partner -- TPG Rise Climate -- for a consideration of $1billion at an enterprise valuation of $9.1 billion. The funds will be utilised towards product, platform, design and infrastructure creation. Further, TPEML has acquired Ford India Pvt Ltd’s manufacturing plant in Sanand, Gujarat for a consideration of Rs 725 crore which will increase its overall capacity by 300,000 units per annum, scalable to 400,000 units per annum.

 

The company is targeting to become net auto debt free by fiscal 2025 mainly through better operating leverage driven by improved volumes and higher margin led FCF at JLR. Further, divestment of non-core assets such as Tata Technologies could further lead help in deleveraging. While the capex intensity is expected to remain high over the medium term (annual investment of ~GBP 3 bn[1] for JLR and Rs 7000-8000 crore in the domestic business), the debt is expected to decrease given the expected healthy cash accrual. However, high competitive intensity and risks related to technology and regulations and the company’s progress against the same would remain closely monitored.

 

The ratings continue to reflect strong legacy of Jaguar Land Rover (JLR) in the global luxury automotive (auto) market, robust market position of TML in the domestic commercial vehicle (CV) segment, improving position in the passenger vehicle (PV) segment, and strong financial support from the Tata group and specifically Tata Sons given its strategic importance, lending substantial financial flexibility. These strengths are partially offset by intense competition in the global luxury auto sector and inherent cyclicality in the domestic CV and PV businesses.


[1] Historically, around 25-30% of this has been expensed through the P&L account.

Analytical Approach

CRISIL Ratings has combined the business risk profiles of TML and its subsidiaries (included in Annexure - list of entities consolidated), including JLR and its joint venture, Chery Jaguar Land Rover Automotive Co Ltd (CJLR), in proportion to its shareholding. To arrive at its ratings, CRISIL Ratings has applied its group notch-up framework to factor in the extent of support available from the Tata group.

 

In regard to Tata Motors Finance Ltd (TMFL; ‘CRISIL AA/Stable/A1+’), which is a captive finance subsidiary, CRISIL Ratings has used the capital allocation approach wherein the capital required for maintaining the credit risk profile is factored. To arrive at the adjusted net debt, CRISIL Ratings reduced the surplus cash of TML and debt of TMFL from the consolidated debt of TML and has also added acceptances to the debt. Surplus cash is defined as cash & equivalents exceeding Rs 5,000 crore, which may be required for regular operations of JLR and domestic business.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation

Key Rating Drivers & Detailed Description

Strengths:

Strong legacy in the global luxury auto segment

Jaguar and Land Rover are iconic brands with a rich heritage in the premium luxury segment. JLR’s product-development capabilities enabled successful launches and expansion into new segments, thus enhancing its product portfolio. The Land Rover segment contributed over 85% to the overall sales of JLR in fiscal 2023 with new product launches such as Defender and refreshed version of Range Rover gaining good traction. While Jaguar has been a drag on profitability, the company has been looking to modernise the brand, scale-down loss-making sedans and make it all-electric from 2025. With frequent refreshes and new product launches in the Land Rover segment, TML would continue to maintain its niche position in the global auto market.

 

Dominant market position in domestic CV segment and improving market position in domestic PV

TML is the dominant player in the domestic CV segment, with a market share of around 42%. Although TML’s overall market share, particularly in light goods vehicles and buses, has declined over the years, it is likely to stabilise with the management’s focus on improving product portfolio and further enhancing distribution reach. Its strong distribution presence along with service touchpoints provides it with a competitive edge. Its captive finance subsidiary arm -- TMFL -- also aids its strong market position. For fiscal 2023, CV wholesale volume grew by over 15% on-year, driven by healthy demand and new product launches.

 

On the PV front, the company has seen significant turnaround in the operations, led by new product launches, product re-engineering and footprint expansion leading to increased reliability and acceptance amongst customers. In fiscal 2023, the market share grew to 13.5% from below 5% in fiscal 2020; this led to margin rising to 6.4% in fiscal 2023 from a negative -9.4% in fiscal 2020. Medium-term outlook remains favourable with healthy growth in volumes and that will support PV margin to expand to 7-8%.

 

Strong financial support from the Tata group

TML is one of the flagship companies of the Tata group. The group chairman, Mr N Chandrasekaran, also chairs its board. Given its strategic importance, it derives strong financial support from the Tata group through its holding company, Tata Sons Ltd. This is reflected in several instances of support over the years, including the Rs 6,500 crore infusion in fiscals 2019 and 2020, which also increased the promoter stake to 45.82% in January 2021 from 38.37% in March 2019. Being a part of the Tata group, the company derives significant financial flexibility and access to low-cost funds from banks and capital markets.

 

Weaknesses:

Intense competition in the global luxury car segment and capital-intensive nature of business

JLR is exposed to stiff competition from bigger and established brands such as BMW, Daimler and Volkswagen. JLR with its niche presence in premium SUVs (sport utility vehicles), has relatively low market share in the world luxury car segment. Due to these factors, profitability is weak as compared to peers. Moreover, the auto business requires large capex, with successive product launches and investment in technology. The global auto industry is rapidly evolving with higher regulatory focus on emission norms and transition to electric vehicles. Further, consumer preference is shifting towards new technologies such as connected cars and autonomous driving. This will require substantial investment in new technologies, regulatory compliance and electrification drive, requiring an investment of GBP 3 billion annually over the medium term.

 

Inherent cyclicality of the domestic CV and PV business

The domestic CV business is inherently cyclical, with strong linkage to economic activity. Multiple events such as the increased axle load norms, the Covid-19 pandemic and transition to BS-VI led to a sharp decline in the industry volumes for fiscals 2020 and 2021, reaching a decadal low. Increased infra outlay will support demand for medium and heavy goods vehicles from key end-user sectors such as steel, cement, construction and increased penetration of e-commerce activities will create demand for light goods vehicles. Nevertheless, volumes are still expected to trail the levels seen in fiscal 2018/19. Further, the company is looking to mitigate the cyclicality through increasing the share of exports, scaling up the used vehicle business as well as increase spare and services penetration.

 

Similar to CV, PV also remains exposed to economic activity. Although the company has gained healthy market share in the past 2 years, it remains susceptible to competition from bigger players and the macro environment.

Liquidity: Strong

Annual cash accrual is projected at Rs 35,000-45,000 crore over the medium term, adequate to meet yearly debt repayment of Rs 13,000-18,000 crore. As of March 2023, consolidated cash & equivalents stood at around Rs 50,000 crore besides undrawn bank lines of about Rs 15,200 crore at JLR. Further, domestic fund-based bank lines remain moderately utilised. Capex including research & development expenses of around Rs 35,000-40,000 crore each for fiscals 2024 and 2025 is expected to be funded through internal accrual, cash balance and external debt. Additionally, liquidity remains supported by strong financial flexibility, being a part of the Tata group.

 

ESG Profile

CRISIL Ratings believes that TML’s Environment, Social, and Governance (ESG) profile supports its credit risk profile.

 

The auto sector has a significant impact on the environment because of the high greenhouse gas (GHG) emissions of its core operations as well as products. The sector also has a significant social impact because of its large workforce across its own operations and value chain partners and focus on innovation and product development. TML has continuously focused on mitigating its environmental and social risks.

 

TML’s key ESG highlights:

 

  • TML’s subsidiary JLR aims to achieve net zero carbon emissions target across supply chain, products and operations by 2039. Additionally, it aims to achieve Zero Tailpipe Emissions Target by 2036.
  • TML has pledged to RE100 - a collaborative, global initiative of influential businesses committed to 100% renewable electricity, and is working to increase the amount of renewable energy generated in-house and procured from off-site sources.
  • TML’s loss time injury frequency rate (LTIFR) for domestic operations increased from 0.09 in fiscal 2020 to 0.23 in fiscal 2022 due to employee turnover, higher displacement of people and restriction on physical training amidst Covid-19. However, it has remained below 0.10 in past, in line with peers. For JLR, it stood at 0.16.
  • TML’s governance profile is marked by 50% of its board comprising independent directors with none of them having tenure exceeding ten years, split in chairman and CEO position, dedicated investor grievance redressal and extensive disclosures.

 

There is growing importance of ESG among investors and lenders. TML’s commitment to ESG principles will play a key role in enhancing stakeholder confidence, given its high share of market borrowings in its overall debt and access to both domestic and foreign capital markets.

Outlook: Stable

TML should continue to benefit from its steady volume growth, improved mix and cost-control measures. Further, moderate capex should support a stable credit risk profile

Rating Sensitivity Factors

Upward Factors
* Improvement in JLR performance which results in higher margins and sustained free cash flow generation

*Improvement in financial risk profile resulting in net cash position
 

Downward Factors
* Weakening of operating profitability with slower than expected volume growth
* Larger debt-funded capex, leading to moderation in its financial risk profile
* Sustained high consolidated Net debt/EBIDTA exceeding 2 times

About the Company

TML is a wholly integrated auto company, manufacturing passenger cars, sports-utility vehicles, and CVs. In June 2008, it acquired JLR, which specialises in manufacturing premium cars, and Land Rover, specialising in premium sports utility vehicles. The PV unit was hived off into a separate subsidiary effective from January 2022 and passenger electric mobility business is housed in a separate subsidiary, TPEML.

Key Financial Indicators (Consolidated – adjusted by CRISIL Ratings)*

Particulars

Unit

2022

2021

Revenue

Rs crore

275836

246295

Profit After Tax (PAT)

Rs crore

-10598

-12841

PAT Margin

%

-3.84

-5.21

Interest coverage

Times

4.39

7.05

Net debt/tangible networth

Times

1.38

1.22

*excluding CJLR

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instruments

Date of allotment

Coupon rate (%)

Maturity date

Issue size
(Rs.Crore)

Complexity level

Rating assigned
with outlook

INE155A08381

Non-convertible debentures

15-Nov-19

9.27%

30-June-23

200

Simple

CRISIL AA/Stable

INE155A08373

Non-convertible debentures

15-Nov-19

9.31%

29-Sept-23

200

Simple

CRISIL AA/Stable

INE155A08399

Non-convertible debentures

15-Nov-19

9.54%

28-June-24

100

Simple

CRISIL AA/Stable

INE155A08407

Non-convertible debentures

26-Feb-20

8.50%

30-Dec-26

250

Simple

CRISIL AA/Stable

INE155A08415

Non-convertible debentures

26-Feb-20

8.50%

29-Jan-27

250

Simple

CRISIL AA/Stable

INE155A07284

Non-convertible debentures

26-May-20

8.80%

26-May-23

1,000

Simple

CRISIL AA/Stable

INE155A08423

Non-convertible debentures

16-June-21

6.60%

29-May-26

500

Simple

CRISIL AA/Stable

INE155A08431

Non-convertible debentures

22-July-21

6.95%

31-Mar-26

500

Simple

CRISIL AA/Stable

NA

Commercial paper

NA

NA

7-365 days

6,000

Simple

CRISIL A1+

NA

Short term debt

NA

NA

7-365 days

1,000

Simple

CRISIL A1+

NA

Fund-based facilities*

NA

NA

NA

1,800

NA

CRISIL AA/Stable

NA

Fund-based facilities

NA

NA

NA

2,200

NA

CRISIL AA/Stable

NA

Non-Fund Based Limit

NA

NA

NA

4,500

NA

CRISIL A1+

NA

Long-term loan

NA

NA

Jun-26

725

NA

CRISIL AA/Stable

NA

Long-term loan

NA

NA

Nov-26

475

NA

CRISIL AA/Stable

NA

Proposed long term bank loan

facility

NA

NA

NA

2,800

NA

CRISIL AA/Stable

*Fund based facility of State bank of India is interchangeable with non-fund based facility.

Annexure – List of Entities Consolidated

S.No.

Name of the entities consolidated

Extent of consolidation

Rationale for consolidation

1

TML Business Services Limited

Full

Strong financial and business linkages

2

Tata Motors Insurance Broking and Advisory Services Limited

3

Tata Motors European Technical Centre PLC

4

Tata Technologies Limited

5

TMF Holdings Limited

6

Tata Marcopolo Motors Limited

7

TML Holdings Pte. Limited

8

TML Distribution Company Limited

9

Tata Hispano Motors Carrocera S.A.

10

Tata Hispano Motors Carrocerries Maghreb SA

11

Trilix S.r.l.

12

Tata Precision Industries Pte. Limited

13

Brabo Robotics and Automation Limited

14

JT Special Vehicles Pvt. Limited (wef August 11th, 2020)

15

TML Business Analytics Services Limited (wef. April 4, 2020)

16

Tata Daewoo Commercial Vehicle Company Limited

17

Tata Daewoo Commercial Vehicle Sales and Distribution Company Ltd.

18

Tata Motors (Thailand) Limited

19

Tata Motors (SA) (Proprietary) Limited

20

PT Tata Motors Indonesia

21

Tata Technologies (Thailand) Limited

22

Tata Technologies Pte Limited

23

INCAT International Plc.

24

Tata Technologies Europe Limited

25

Tata Technologies Nordics AB (Formerly known as Escenda Engineering AB)

26

INCAT GmbH.

27

Tata Technologies Inc.

28

Tata Technologies de Mexico, S.A. de C.V.

29

Cambric Limited

30

Tata Technologies SRL Romania

31

Tata Manufacturing Technologies (Shanghai) Limited

32

Jaguar Land Rover Automotive Plc

33

Jaguar Land Rover Limited

34

Jaguar Land Rover Austria GmbH

35

Jaguar Land Rover Belux NV

36

Jaguar Land Rover Japan Limited

37

Jaguar Cars South Africa (Pty) Limited

38

JLR Nominee Company Limited

39

The Daimler Motor Company Limited

40

Daimler Transport Vehicles Limited

41

S.S. Cars Limited

42

The Lanchester Motor Company Limited

43

Jaguar Land Rover Deutschland GmbH

44

Jaguar Land Rover Classic Deutschland GmbH

45

Jaguar Land Rover Holdings Limited

46

Jaguar Land Rover North America LLC

47

Land Rover Ireland Limited

48

Jaguar Land Rover Nederland BV

49

Jaguar Land Rover Portugal - Veiculos e Pecas, Lda.

50

Jaguar Land Rover Australia Pty Limited

51

Jaguar Land Rover Italia Spa

52

Jaguar Land Rover Espana SL

53

Jaguar Land Rover Korea Company Limited

54

Jaguar Land Rover (China) Investment Co. Limited

55

Jaguar Land Rover Canada ULC

56

Jaguar Land Rover France, SAS

57

Jaguar Land Rover (South Africa) (Pty) Limited

58

Jaguar e Land Rover Brasil industria e Comercio de Veiculos LTDA

59

Limited Liability Company "Jaguar Land Rover" (Russia)

60

Jaguar Land Rover (South Africa) Holdings Limited

61

Jaguar Land Rover India Limited

62

Jaguar Cars Limited

63

Land Rover Exports Limited

64

Jaguar Land Rover Pension Trustees Limited

65

Jaguar Racing Limited

66

InMotion Ventures Limited

67

In-Car Ventures Limited (Formerly known as Lenny Insurance Limited)

68

InMotion Ventures 2 Limited

69

InMotion Ventures 3 Limited

70

Shanghai Jaguar Land Rover Automotive Services Company Limited

71

Jaguar Land Rover Slovakia s.r.o

72

Jaguar Land Rover Singapore Pte. Ltd.

73

Jaguar Land Rover Columbia S.A.S

74

PT Tata Motors Distribusi Indonesia

75

Tata Motors Finance Solutions Limited

76

Tata Motors Finance Limited

77

TMNL Motor Services Nigeria Limited

78

Jaguar Land Rover Ireland (Services) Limited

79

Spark44 (JV) Limited

80

Spark44 Pty. Ltd.

81

Spark44 GMBH

82

Spark44 LLC

83

Spark44 Shanghai Limited

84

Spark44 DMCC

85

Spark44 Demand Creation Partners Limited

86

Spark44 Limited (London & Birmingham)

87

Spark44 Pte Ltd.

88

Spark44 Communication SL

89

Spark44 SRL

90

Spark44 Seoul Limited

91

Spark44 Japan KK

92

Spark44 Canada Inc

93

Spark44 South Africa (Pty) Limited

94

Spark44 Colombia S.A.S.

95

Spark44 Taiwan Limited

96

Jaguar Land Rover Taiwan Company Limited

97

Jaguar Land Rover Servicios Mexico, S.A. de C.V.

98

Jaguar Land Rover Mexico, S.A.P.I. de C.V.

99

Jaguar Land Rover Hungary KFT

100

Jaguar Land Rover Classic USA LLC

101

Jaguar Land Rover Ventures Limited

102

Bowler Motors Limited

103

Jaguar Land Rover (Ningbo) Trading Co. Limited

104

Chery Jaguar Land Rover Automotive Company Limited

Proportionate to its holding

Strong financial & business linkages

Annexure - Rating History for last 3 Years
  Current 2023 (History) 2022  2021  2020  Start of 2020
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 8000.0 CRISIL AA/Stable 12-01-23 CRISIL AA-/Stable 12-01-22 CRISIL AA-/Stable 15-03-21 CRISIL AA-/Stable 22-04-20 CRISIL AA-/Negative CRISIL AA-/Negative
      --   -- 04-01-22 CRISIL AA-/Stable   --   -- --
Non-Fund Based Facilities ST 4500.0 CRISIL A1+ 12-01-23 CRISIL A1+ 12-01-22 CRISIL A1+ 15-03-21 CRISIL A1+ 22-04-20 CRISIL A1+ CRISIL A1+
      --   -- 04-01-22 CRISIL A1+   --   -- --
Commercial Paper ST 6000.0 CRISIL A1+ 12-01-23 CRISIL A1+ 12-01-22 CRISIL A1+ 15-03-21 CRISIL A1+ 22-04-20 CRISIL A1+ CRISIL A1+
      --   -- 04-01-22 CRISIL A1+   --   -- --
Non Convertible Debentures LT 3000.0 CRISIL AA/Stable 12-01-23 CRISIL AA-/Stable 12-01-22 CRISIL AA-/Stable 15-03-21 CRISIL AA-/Stable 22-04-20 CRISIL AA-/Negative CRISIL AA-/Negative
      --   -- 04-01-22 CRISIL AA-/Stable   --   -- --
Short Term Debt ST 1000.0 CRISIL A1+ 12-01-23 CRISIL A1+ 12-01-22 CRISIL A1+ 15-03-21 CRISIL A1+ 22-04-20 CRISIL A1+ CRISIL A1+
      --   -- 04-01-22 CRISIL A1+   --   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Fund-Based Facilities 475 Axis Bank Limited CRISIL AA/Stable
Fund-Based Facilities 50 Standard Chartered Bank Limited CRISIL AA/Stable
Fund-Based Facilities 100 Union Bank of India CRISIL AA/Stable
Fund-Based Facilities 50 Bank of America N.A. CRISIL AA/Stable
Fund-Based Facilities 250 Bank of Baroda CRISIL AA/Stable
Fund-Based Facilities 50 Kotak Mahindra Bank Limited CRISIL AA/Stable
Fund-Based Facilities* 1800 State Bank of India CRISIL AA/Stable
Fund-Based Facilities 100 Citibank N. A. CRISIL AA/Stable
Fund-Based Facilities 1000 HDFC Bank Limited CRISIL AA/Stable
Fund-Based Facilities 125 ICICI Bank Limited CRISIL AA/Stable
Long Term Loan 475 Axis Bank Limited CRISIL AA/Stable
Long Term Loan 725 State Bank of India CRISIL AA/Stable
Non-Fund Based Limit 580 ICICI Bank Limited CRISIL A1+
Non-Fund Based Limit 100 Union Bank of India CRISIL A1+
Non-Fund Based Limit 20 Kotak Mahindra Bank Limited CRISIL A1+
Non-Fund Based Limit 3200 State Bank of India CRISIL A1+
Non-Fund Based Limit 200 HDFC Bank Limited CRISIL A1+
Non-Fund Based Limit 400 Axis Bank Limited CRISIL A1+
Proposed Long Term Bank Loan Facility 2800 Not Applicable CRISIL AA/Stable
This Annexure has been updated on 19-May-2023 in line with the lender-wise facility details as on 04-Jan-2022 received from the rated entity
*Fund based facility of State bank of India is interchangeable with non-fund based facility.
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Commercial Vehicle Industry
CRISILs Criteria for rating short term debt
CRISILs Criteria for Consolidation
Criteria for Notching up Stand Alone Ratings of Companies based on Group Support

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CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisil.com/en/home/our-businesses/ratings/credit-ratings-scale.html