CRISIL has assigned its 'AA-/Stable' rating to the non-convertible debentures programme while reaffirming its ratings on the bank facilities and debt programme of Ashoka Buildcon (ABL; part of the Ashoka group) at 'AA-/Stable/A1+'.

The ratings continue to reflect the Ashoka group's established track record in executing engineering, procurement, and construction (EPC) contracts and BOT road projects, and its sound financial risk profile, marked by healthy net worth, low gearing, and comfortable debt protection metrics. These rating strengths are partially offset by the continued funding support required by the group's subsidiaries, and its working-capital-intensive operations.

CRISIL believes that the Ashoka group's financial risk profile will remain sound over the medium term, with healthy capital structure and debt protection metrics. Furthermore, its business risk profile is expected to improve over the period with completion of its large ongoing projects and moderate revenue growth in its EPC business.

The outlook may be revised to 'Positive' if the group increases its revenue and margins substantially and sustainably, while maintaining its financial risk profile, and if the performance of its operational projects improves, resulting in a better business risk profile. Conversely, the outlook may be revised to 'Negative' if the Ashoka group faces increased risk related to project execution, leading to substantial delay in project implementation, or if it is required to provide more-than-expected support to group companies because of lower toll collections, or if the group significantly increases its exposure in new projects, resulting in higher-than-expected equity investment, impacting its financial risk profile.

Shares of the company gained Rs 3.8, or 2.91%, to trade at Rs 134.50. The total volume of shares traded was 17,417 at the BSE (2.15 p.m., Monday).