CRISIL has enhanced the rated amount while retaining 'A+/Stable' ratings on on the bank facilities of Bharat Rasayan. The rated amount enhanced to Rs 2.17 billion from Rs 1.41 billion for total bank loan facilities.

CRISIL's ratings continue to reflect the Bharat group's healthy operating efficiencies and diversified product profile. The ratings also factor in the group's healthy financial risk profile, marked by healthy cash accruals, robust debt protection metrics, and low debt levels. These rating strengths are partially offset by the Bharat group's working-capital-intensive operations and exposure to risks inherent in the agricultural chemicals market in India.

For arriving at the ratings, CRISIL has combined the business and financial risk profiles of BRL, Bharat Insecticides (BIL), and BR Agrotech (BAL). This is because these entities, together referred to as the Bharat group, are under a common ownership and management, and in the same line of business. Moreover, there exists fund fungibility among the group entities.

CRISIL believes that the Bharat group will continue to benefit over the medium term from its management's conservative financial policy, the integrated nature of its operations, and its diversified product profile. The outlook may be revised to 'Positive' if the group significantly increases its market share and sales growth, while it efficiently manages its working capital requirements.

The outlook may be revised to 'Negative' in case of further lengthening of the Bharat group's working capital cycle, or if the group records steep decline in its operating profitability or revenues, resulting in weakening of its liquidity, or in case of any alteration in its financial policy towards higher reliance on debt.

Shares of the company declined Rs 7.45, or 2.14%, to settle at Rs 340.00. The total volume of shares traded was 210 at the BSE (Monday).