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QUIPPO ENERGY PRIVATE LIMITED

Ratings
Facilities Amount (Rs. crore) Ratings Remarks
Long Term Bank Facilities
(Facility 1)
#

57.50 CARE AA- (SO)
[Double A Minus
(Structured Obligation)]
Revised from CARE BBB-
[Triple B Minus]
Long Term Bank Facilities
(Facility 2)
*

7.85 CARE A (SO)
[Single A (Structured Obligation)]
Reaffirmed
Long Term/
Short Term Bank Facilities
(Facility 3)
*

10.00 CARE A (SO)/CARE A1 (SO)
[Single A (Structured Obligation)/
A One (Structured Obligation)]
Reaffirmed
Long Term Bank Facilities 3.82 CARE BBB-
[Triple B Minus]
Reaffirmed
Total Facilities 79.17
* backed by put option from Srei Infrastructure Finance Ltd. (SIFL); # backed by letter of comfort from SIFL
Rating Rationale
The revision in rating of the long-term bank facilities (Facility 1) of Quippo Energy Private Limited (QEPL) takes into account
the credit enhancement in the form of Put option extended by Srei Infrastructure Finance Ltd (SIFL: Rated CARE AA-/CARE
A1+) for such facilities of QEPL.
Furthermore, the rating of the long-term bank facilities (Facility 2) and long/ short-term bank facilities (Facility 3) of QEPL is
primarily based on credit enhancement in the form of Letter of Comfort extended by SIFL for such facilities.
The credit profile of SIFL draws strength from the satisfactory track record of the company with Infrastructure Finance
Company status from RBI, established experience of the promoter group with prominent position in infrastructure financing
space, continuing growth in advances, diversified resource mix, comfortable asset-liability maturity profile and satisfactory
gearing with adequate capitalisation. The ratings are however, constrained by the risk associated with volatility in interest rates,
exchange rate risks in respect of foreign currency borrowings, portfolio concentration risk, challenging operating environment in
the infrastructure financing space leading to increase in NPA levels and moderate financial performance. The ratings also factor in
SIFLs investment in group companies, majority of which are in infrastructure space and are yet to be divested/diluted to yield
commensurate returns. Ability of the company to monetize its strategic investments, improve its asset quality and profitability
would remain the key rating sensitivities.
Quippo Energy Private Limited - Background
Quippo Energy Private Limited (QEPL), which began operations in 2008, is a part of Quippo group (Promoted by Kanoria
family of Srei group) having established position in the business of renting of infrastructure equipment servicing the high growth
verticals of Construction, Oil & Gas, Telecom and Energy. Earlier entire shareholding of QEPL was owned by Quippo
Infrastructure Equipment Ltd (QIEL, holding company of the Quippo group). Pursuant to major business consolidation scheme
decided in January, 2010, QIEL merged with Srei Infrastructure Finance Limited (SIFL, rated CARE AA-/CARE A1+) with
retrospective effect from April 1, 2010. Presently, QEPL is a wholly owned subsidiary of SIFL.
QEPL provides supplementary equipment for gas based power plants upto 25 MW to its customers on operating lease basis.
These equipment improve overall thermal efficiency of power plants due to cogeneration.

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Financial Performance
(Rs. crore)
Particulars 31/03/11 31/03/12 31/03/13
A A A
Working Results
Income from Operations 46.28 52.00 36.57
PBILDT 24.31 24.34 12.78
Interest 8.28 9.55 10.04
Depreciation 11.31 12.78 13.86
PBT 4.72 2.29 -10.19
PAT 3.40 1.58 -6.94
Gross Cash Accruals 15.09 14.60 3.67
Financial Position
Equity Share capital 1.00 1.00 1.00
Net Worth 25.04 27.41 17.23
Total Debt 79.88 92.05 109.60
Key Ratios
Profitability (%)
PBILDT / Total OI 52.51 46.81 34.94
APAT / Total OI 7.35 3.04 -18.98
ROCE 13.57 10.53 -0.12
RONW 15.02 6.03 -31.09
Solvency(times)
Debt Equity Ratio 3.12 3.27 5.58
Overall Gearing 3.19 3.36 6.36
Interest coverage (Times) 2.94 2.55 1.27
Term Debt/GCA 5.18 6.14 26.20
Total Debt/GCA 5.29 6.31 29.89
Liquidity (times)
Current ratio 1.23 0.50 0.47
Quick ratio 0.94 0.34 0.37
Avg. Collection Period (days) 49 46 68
Avg. Inventory (days) 78 71 77
Avg. Creditors (days) 16 10 10
Op. cycle (days) 111 107 136
About the Guarantor (Srei Infrastructure Finance Ltd.)
SIFL, 24 years old Kolkata based NBFC, was engaged in leasing and hire-purchase/hypothecation financing of heavy construction
equipment and financing of infrastructure related projects. Pursuant to forming a 50:50 joint venture (JV) with BNP Paribas
Lease Group (BPLG) a 100% subsidiary of BNP Paribas, SIFL divested major part of its equipment financing and leasing
business alongwith the assets & liabilities as on Jan.1, 2008 in the JV company Srei Equipment Finance Pvt. Ltd. (SEFPL).
Post divestment, SIFL is engaged in project financing, infrastructure project advisory, equipment financing business (equipment
of more than Rs.15.0 cr).
SIFL is classified as NBFC-IFC by RBI and it has also received Public Finance Institution status from Minitry of Corporate
Affairs, GoI.
Furthermore, in June 2013 SIFL has applied for a banking license. This apart, it has also received principle authorization from RBI
for setting up white label ATMs.
SIFL earned PAT (after defd. tax) of Rs.95.0 crore (PY Rs.79.7 crore) on total income of Rs.1,666.5 crore (PY Rs.1,180.7
crore) in FY13.
(This follows our brief rational for entity published on 9 October 2013)

CARE is headquartered in Mumbai, with Offices all over India. The office addresses and contact numbers are given below:
HEAD OFFICE: MUMBAI
Mr. D.R. Dogra
Managing Director
Mobile : +91-98204 16002
E-mail : dr.dogra@careratings.com
Mr. Rajesh Mokashi
Dy. Managing Director
Mobile +91-98204 16001
E-mail: rajesh.mokashi@careratings.com
Ms. Meenal Sikchi
Vice President Bank Loan & Instrument Rating
Mobile: +91-9819009839
mail: meenal.sikchi@careratings.com
Mr.Ankur Sachdeva
Vice President Banking & Financial Services
Mobile: +91-9819698985
E-mail: ankur.sachdeva@careratings.com
CREDIT ANALYSIS & RESEARCH LTD.
HEAD OFFICE | 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East),
Mumbai - 400 022 |Tel: +91-022- 6754 3456 | E-mail: care@careratings.com | Fax: +91-022- 6754 3457.
KOLKATA | Ms. Priti Agarwal | Cell: +91-98319 67110 | Tel: +91-33- 4018 1600/ 1602 |
E- mail: priti.agarwal@careratings.com | 3rd Flr., Prasad Chambers (Shagun Mall Bldg), 10A, Shakespeare Sarani,
Kolkata -700 071
CHENNAI | Mr. V Pradeep Kumar | Cell: +91 9840754521 | Tel: +91-44-2849 7812/2849 0811 |
Fax: +91-44-2849 0876 | Email: pradeep.kumar@careratings.com | Unit No. O-509/C, Spencer Plaza, 5th Floor, No. 769,
Anna Salai, Chennai - 600 002
AHMEDABAD | Mr. Mehul Pandya | Cell: +91-98242 56265 | Tel: +91-79-40265656 | Fax: +91-79-40265657 |
E-mail:mehul.pandya@careratings.com | 32, Titanium, Prahaladnagar Corporate Road, Satellite, Ahmedabad - 380 015.
NEW DELHI | Ms. Swati Agrawal | Cell: +91-98117 45677 | Tel: +91-11-2331 8701/ 2371 6199 |
E-mail: swati.agrawal@careratings.com | 3
rd
Floor, B -47, Inner Circle, Near Plaza Cinema, Connaught Place,
New Delhi - 110 001.
BENGALURU | Mr. Dinesh Sharma | Cell: +91 9900041975 | Tel: +080-4115 0445/ 4165 4529|
Tele fax: 080-41514599 | E-mail: dinesh.sharma@careratings.com | Unit No.1101-1102, 11
th
Floor, Prestige Meridian II
No-30, M .G. Road, Bengaluru -560001.
HYDERABAD | Mr. Saikat Roy |Tel: +91-40-40102030 |E-mail: saikat. roy@careratings.com | 401, Ashoka Scintilla |
3-6-520, Himayat Nagar | Hyderabad - 500 029.
PUNE | Mr. Rahul Patni | Cell: +91-78754 33355 | Tel: +91-20- 4000 9000 |E-mail: rahul.patni@careratings.com |
9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda, Senapati Bapat Road, Shivaji Nagar, Pune - 411 015.
JAIPUR| Mr. Rahul Jain | Cell: +91-9314921496 | Tel: +91-0141-4020213/14 |E-mail: rahul.jain@careratings.com |
304, Pashupati Akshat Heights, Plot No. D-91, Madho Singh Road, Near Collectorate Circle, Bani Park , Jaipur 302016.