Sadbhav Infra tumbles after CARE downgrades subsidiary's credit rating

Sadbhav Infrastructure Project fell 5.69% to Rs 67.90 at 11:27 IST on BSE after a rating agency downgraded the credit rating of Rohtak-Hissar tollway.

The announcement was made during the market hours today, 28 June 2019.

Meanwhile, S&P BSE Sensex was down 82.18 points or 0.21% at 39,504.23.

On BSE, 5,689 shares were traded in Sadbhav Infrastructure Project counter, compared to a 2-week average of 1,070 shares. The share price hit an intraday high of Rs 68.15 and an intraday low of Rs 58.75. It hit a 52-week high of Rs 132.80 on 30 July 2018 and a 52-week low of Rs 58.75 on 28 June 2019.

Shares of Sadbhav Infrastructure Project rose 14.1% in the past two trading sessions to settle at Rs 72 yesterday, 27 June 2019, from its close of Rs 63.10 on 25 June 2019.

Care Ratings downgraded the credit rating of the firm's wholly-owned subsidiary, Rohtak-Hissar Tollway Private Limited (RHTPL), from 'BB+' to 'D'. The revision in the rating assigned to the bank facilities of RHTPL factors in overdues in the account (as per lender's feedback) for debt servicing owing to poor liquidity and debt coverage indicators arising due to subdued toll collection on sustained basis as against large debt obligations.

Sadbhav Infrastructure Project (SIPL) is not a guarantor to the debt availed by RHTPL. SIPL has a comfortable liquidity position with cash, bank and its equivalent amounting to Rs 170.37 crore as on 31 March 2019.

On a consolidated basis, Sadbhav Infrastructure Project reported net loss of Rs 83.17 crore in Q4 March 2019 compared with net loss of Rs 82.26 crore in Q4 March 2018. Net sales rose 18.2% to Rs 895.44 crore in Q4 March 2019 over Q4 March 2018.

Sadbhav Infrastructure Project (SIPL) has been involved in development, operation and maintenance of road infrastructure assets.

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