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    BACC Healthcare Private_r_22052020

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    BACC Healthcare Private_r_22052020

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    BACC Healthcare Private_r_22052020

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    © All Rights Reserved
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    of 6

    May 22, 2020

    BACC Healthcare Private Limited: Rating reaffirmed; Outlook changed to Stable from
    Negative; rating withdrawn

    Summary of rating action


    Instrument* Previous Rated Amount Current Rated Amount Rating Action
    (Rs. crore) (Rs. crore)
    Long Term – Fund Based 19.50 19.50 [ICRA]A-(CE) reaffirmed; outlook
    revised to Stable from Negative; rating
    withdrawn
    Total 19.50 19.50
    *Instrument details are provided in Annexure-1

    Rationale
    ICRA has changed the outlook on the long-term rating to Stable from Negative and withdrawn the rating of [ICRA]A-(CE)
    (pronounced ICRA A minus credit enhancement) assigned to the Rs. 19.50-crore bank facilities of BACC Healthcare
    Private Limited (BACC/the company).

    The rating was withdrawn in accordance with ICRA's policy on withdrawal and suspension at the request of the company,
    based on a no-due certificate provided by its banker.

    Link to the last press release published on ICRA’s website


    https://www.icra.in/Rationale/ShowRationaleReport/?Id=79362

    Key rating drivers and their description


    The key rating drivers have not been captured as the rated instrument has been withdrawn.

    Liquidity position: Not applicable


    Rating sensitivities: Not applicable
    Analytical approach
    Analytical Approach Comments
    Corporate Credit Rating Methodology
    Applicable Rating Methodologies
    ICRA Policy on Withdrawal and Suspension of Credit Rating
    Parent/Group Company: Healthcare Global Enterprises Limited (HCGE; rated
    [ICRA]A-(Stable))/[ICRA]A2+
    Parent/Group Support
    The assigned rating was based on an unconditional, irrevocable corporate
    guarantee extended by HCGE
    ICRA had evaluated the standalone operational and financial profile of BACC; the
    Consolidation/Standalone rating was based on the strength of the corporate guarantee provided by HCGE
    for BACC’s borrowings

    1
    About the company
    BACC operates assisted fertility centres across the country under the brand name Milann. It has eight centres in
    Bengaluru, Delhi, Ahmedabad and Chandigarh. The company was set up by Dr. Kamini A Rao and has been carrying out
    the business of medical consultation and treatment in maternity, fertility, cytogenetic, endoscopy and other education
    services for the last 25 years. In FY2013, Healthcare Global Enterprises Limited (HCGE) acquired a 50.1% stake in the
    company after Dr. Rao diluted her stake.

    Key financial indicators (audited)


    FY2018 FY2019
    Operating Income (Rs. crore) 66.9 64.4
    PAT (Rs. crore) 4.0 -1.8
    OPBDIT/OI (%) 17.0% 6.3%
    RoCE (%) 18.5% -2.5%

    Total Outside Liabilities/Tangible Net Worth (times) 0.4 0.4


    Total Debt/OPBDIT (times) 0.4 0.4
    Interest Coverage (times) 9.1 3.3
    DSCR 2.2 1.0
    Source: Company and ICRA research; OPBDITA: Operating profit before depreciation, interest and taxes; PAT: Profit after tax; RoCE: Return on capital
    employed; TNW: Tangible net worth; NWC: Net working capital; DSCR: Debt service coverage ratio

    About the guarantor


    Established in 1989, Healthcare Global Enterprises Limited, is present primarily in the field of oncology with the largest
    cancer care network (with 22 cancer care centres as of February 2019) in South Asia. HCGE is promoted by Dr. B.S. Ajai
    Kumar, a practising radiation and medical oncologist with over 30 years of experience. Originally established by Dr.
    Kumar and four other oncologists with a single cancer care centre in Bangalore, the Bangalore Institute of Oncology
    (BIO), the company has rapidly expanded its presence to Ahmedabad, Chennai, Nasik, Ranchi, Rajkot, Cuttack, Hubli,
    Mumbai, Nagpur, Vizag and Vijayawada, among others. It is currently present across the oncology value chain, offering
    services from prevention, screening, diagnosis and treatment to rehabilitation, supportive care and palliative care.

    The company had acquired an equity interest of 50.1% in BACC in 2013, which operates fertility centres under the Milann
    brand. Pursuant to this acquisition, it now operates eight Milann fertility centres in Bengaluru, Delhi, Ahmedabad and
    Chandigarh. In accordance with the terms of the shareholders’ agreement dated March 22, 2013 between the company,
    Dr. Rao and BACC, the company has announced that it shall acquire the remaining 46,695 equity shares, constituting
    49.9% of the share capital of BACC from Dr. Rao. The same is expected in FY2021. While the promoter group currently
    holds a 23.9% stake in the company, Aseco is expected to become the majority shareholder following an equity infusion
    in FY2021.

    2
    Key financial indicators - HCGE (audited)
    Standalone FY2018 FY2019
    Operating Income (Rs. crore) 830.7 978.7
    PAT (Rs. crore) 18.3 -19.9
    OPBDIT/OI (%) 14.3% 12.8%
    RoCE (%) 9.0% 5.2%

    Total Outside Liabilities/Tangible Net Worth (times) 0.8 1.3


    Total Debt/OPBDITA (times) 3.9* 5.3*
    Interest Coverage (times) 2.8 1.8
    DSCR 0.9 0.8
    Source: Healthcare Global Enterprises Limited; *Indicates that in addition to the debt specified here, the company had a contingent liability of Rs. 54.4
    crore in the form of corporate guarantees given as on March 31, 2019

    Status of non-cooperation with previous CRA: Not applicable


    Any other information: None
    Rating history for past three years
    Chronology of Rating History for the Past 3
    Current Rating (FY2021) Years
    Amount Date & Date &
    Outstanding as Date & Rating in Rating in Date & Rating
    Amount on March 31, Rating FY2020 FY2019 in FY2018
    Rated 2020 May 22, April 05 August 31,
    Instrument Type 2020 2019 2018 May 17, 2017
    [ICRA]A-
    (CE) [ICRA]A-
    Long (Stable); (SO) [ICRA]A- [ICRA]A-(SO)
    1 Term Loan Term 19.5 0.00 Withdrawn (Negative) (SO) (Stable) (Stable)
    Amount in Rs. crore

    Complexity level of the rated instrument


    ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". The
    classification of instruments according to their complexity levels is available on the website www.icra.in

    3
    Annexure-1: Instrument details
    Date of Amount
    Issuance / Maturity Rated Current Rating and
    ISIN Instrument Name Sanction Coupon Rate Date (Rs. crore) Outlook
    [ICRA]A-(CE)(Stable);
    NA Term Loan August 2014 NA NA 19.5 withdrawn
    Source: Company

    4
    Analyst Contacts
    Subrata Ray Pavethra Ponniah
    +91 22 6114 3408 +91 44 4596 4300
    [email protected] [email protected]

    Faizan Ahmed Mythri Macherla


    +91 80 4332 6414 +91 80 4332 6407
    [email protected] [email protected]

    Relationship Contact
    Jayanta Chatterjee
    +91 80 4332 6401
    [email protected]

    MEDIA AND PUBLIC RELATIONS CONTACT


    Ms. Naznin Prodhani
    Tel: +91 124 4545 860
    [email protected]

    Helpline for business queries:


    +91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)

    [email protected]

    About ICRA Limited:


    ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services
    companies as an independent and professional investment Information and Credit Rating Agency.

    Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited
    Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit
    Rating Agency Moody’s Investors Service is ICRA’s largest shareholder.

    For more information, visit www.icra.in

    5
    ICRA Limited
    Corporate Office
    Building No. 8, 2nd Floor, Tower A; DLF Cyber City, Phase II; Gurgaon 122 002
    Tel: +91 124 4545300
    Email: [email protected]
    Website: www.icra.in

    Registered Office
    1105, Kailash Building, 11th Floor; 26 Kasturba Gandhi Marg; New Delhi 110001
    Tel: +91 11 23357940-50

    Branches

    Mumbai + (91 22) 24331046/53/62/74/86/87


    Chennai + (91 44) 2434 0043/9659/8080, 2433 0724/ 3293/3294,
    Kolkata + (91 33) 2287 8839 /2287 6617/ 2283 1411/ 2280 0008,
    Bangalore + (91 80) 2559 7401/4049
    Ahmedabad+ (91 79) 2658 4924/5049/2008
    Hyderabad + (91 40) 2373 5061/7251
    Pune + (91 20) 2556 0194/ 6606 9999

    © Copyright, 2020 ICRA Limited. All Rights Reserved.

    Contents may be used freely with due acknowledgement to ICRA.

    ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of
    surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer
    concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA
    office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA fro m sources believed by it to
    be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it.
    While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any
    kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such
    information. Also, ICRA or any of its group companies may have provided services other than rating to the issuer rated. All information contained
    herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication
    or its contents

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