CRISIL has enhanced the rated amount while retaining 'AA+/Stable/A1+' the bank facilities of Amara Raja Batteries (ARBL). The rated amount enhanced to Rs 1,250 million from Rs 600 million. CRISIL's ratings continue to reflect the company's diverse revenue streams and product portfolio, strong technical support from its collaborator and co-promoter, Johnson Controls (JCI; rated 'BBB+/Stable/A-2' by Standard & Poor's), and its established distribution network; these strengths have helped the company steadily consolidate its position in the domestic storage batteries segment.

CRISIL believes that ARBL's business risk profile will continue to benefit from its established market position in the domestic storage battery segment and its improving revenue and customer diversity, including from capacity being added. This, coupled with prudent funding of its capital expenditure (capex), will ensure sustenance of the company's strong credit metrics over the medium term.

The rating outlook may be revised to 'Positive' if ARBL registers substantial improvement in its market share in the storage battery industry, maintains healthy profitability, sustains its healthy financial risk profile, and strengthens its liquidity. Conversely, the outlook may be revised to 'Negative' if the company reports lower-than-expected revenue growth due to delays in ramping up capacity following the completion of its capex, or if there is significant decline in its operating profitability or higher-than-expected debt-funded capex, adversely impacting its key credit metrics.

Shares of the company gained Rs 23.85, or 3.39%, to trade at Rs 727.50. The total volume of shares traded was 76,716 at the BSE (11.47 a.m., Wednesday).