“The revision in the ratings assigned to the bank facilities of Gayatri Projects is on account of stretched liquidity position of the company due to delays in receipt of receivables leading to cash flow mismatch resulting in delays in debt servicing,” CARE Ratings said in a press release.
“The company in line with its stated strategy is pursuing monetization of its stake in Sembcorp Energy India (SEIL). The stake sale was being undertaken to improve company's liquidity position; however, despite its best efforts, the Company was not able to fast track the same and as a result there was a delay in Company's debt service obligations,” Gayatri Projects said on a ratings downgrade.
Adding: "SEIL stake sale has now progressed significantly and the Company expects to close the said deal before the end of the current calendar year. Post the completion of the SEIL deal, GPL will be able to significantly de-leverage its balance sheet and overcome its temporary liquidity crunch."