India's SPML Infra grows EBITDA, restructures debt

SPML Infra, the Indian water project developer and infrastructure firm, successfully implemented Reserve Bank of India's (RBI) S4A scheme for sustainable structuring of stressed assets during the year to end-March 2018.

"Strengthening project execution capabilities and increasing efficiency,” SPML Infra chairman Subhash Sethi

The company’s debt of INR 5,469 million ($82 million) was restructured by a consortium of banks for repayment from 2023 onward for five years. SPML Infra is only the second Indian infrastructure development company to introduce the scheme before it was withdrawn by RBI. “The moratorium on interest for the first five years will help us to strengthen working capital management, and larger cash flows will make it possible to complete projects within time and budget,” a company statement said.

SPML Infra, which is listed on the National Stock Exchange (NSE) of India and Bombay Stock Exchange (BSE), generated growth in earnings before interest, tax, depreciation and amortisation (EBITDA) of 2.7 per cent to INR 2,764 million, on revenues of INR 21,102 million, for the year.

SPML Infra chairman Subhash Sethi said: “SPML registered robust profit across group companies with our focus on strengthening project execution capabilities and increasing efficiency.”

RBI’s S4A scheme for sustainable structuring of stressed assets was introduced to provide returns to lenders when the borrower’s performance improves, and covers projects that have already started commercial operations.

SPML Infra is a developer for water treatment and transmission, and wastewater handling, treatment and recycling projects; as well as waste management, power, and civil engineering schemes.

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