CRISIL has enhanced the rated amount while retaining 'AA-/Stable/A1+' on the bank facilities and debt programme of Ashoka Buildcon. The rated amount enhanced to Rs 30.06 billion from Rs 20.06 billion. CRISIL's ratings continues to reflect the Ashoka group's established track record in executing engineering, procurement, and construction (EPC) contracts and build operate and transfer (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 or 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 to new projects resulting in considerably high equity investment, impacting its financial risk profile.

Shares of the company gained Rs 9.8, or 7.65%, to trade at Rs 137.90. The total volume of shares traded was 71,162 at the BSE (2.29 p.m., Wednesday).