Orient Green Power Company Limited — Credit Ratings, 07-02-2025: Credit Rating

India Ratings has assigned a rating of IND BBB-/Stable for the cash credit facility of INR 1 crore and affirmed the same rating for the rupee term loan of INR 27.93 crore for Clarion Wind Farm Private Limited.

The assessment reflects the project's historical generation performance, which has seen fluctuations due to wind resource variability and aging equipment. The average net plant load factor was 15.75% during FY24 but dropped to 13.66% over the trailing 12 months due to lower wind speeds. Despite these challenges, the company has benefitted from firm power purchase agreements with reliable customers, ensuring steady cash flows.

Financially, recent results indicate revenue from operations at INR 47.12 crore with a minor increase from the previous year. EBITDA stood at INR 33.03 crore, with a stable margin of around 70%. However, finance costs have seen a decline from INR 11.97 crore to INR 8.45 crore, improving the interest coverage ratio significantly from 2.51x to 3.91x, showcasing better debt servicing capability. The gross debt to EBITDA ratio improved to 1.25x.

Liquidity appears adequate with cash equivalents increasing to INR 5.89 crore, bolstered by unutilised working capital facilities. The firm’s moderate operational risk and structural debt management strategies suggest they can navigate financial commitments effectively. Overall, the rating indicates a stable outlook amid operational challenges, and investors might consider holding their positions with an eye on improving generation capabilities and market conditions.