India Rating

Established Brand: ERL is part of Emami Group which has an established brand name in the fast-moving consumer goods sector. The Emami Group has an operating record of around four decades and diversified business interests in segments such as fast-moving consumer goods, paper, real estate, edible oil refining, and healthcare with a combined turnover of around INR200 billion in FY21 (FY20: INR190 billion). The group’s flagship entity, Emami Limited has a market
capitalisation of INR196 billion as of 28 March 2022.
Strong Performance of Ongoing Projects: The company has three ongoing projects in its portfolio: Emami Nature in Jhansi, Emami Business Bay in Kolkata and Emami Aastha in Kolkata. The total saleable area of all the three projects is about 3.5 million sf of which 58% has already been sold. As on 28 February 2022, the total booking value received was INR3,622 million, of which INR974 million havealready been collected. The committed receivables totalled INR2,648 million.
Ind-Ra estimates the value of the unsold area at INR4,933 million. The total receivables from sold and unsold area are about INR7,581 million. The agency estimates that the company has additional receivables of INR 1,898 from its completed projects. Ind-Ra believes that the company has sufficient net cash flows to take care of all project related obligations and the loans backed by shares of EL.