CRISIL has enhanced the rated amount while retaining 'A-/Stable' ratings on Century Plyboards (India)'s bank facilities. The rated amount enhanced to Rs 8.26 billion from Rs 5.92 billion for total bank loan facilities.

CRISIL's ratings continue to reflect the Century group's established market position in the plywood industry, and expected improvement in its financial risk profile over the medium term, driven by stable accruals from the plywood unit, increasing contribution of the high-margin logistics unit, and absence of further debt-funded capex plans. These rating strengths are partially offset by the group's exposure to risks related to fluctuation in forex rates, intense market competition, and the fragmented and cyclical nature of the industries in which the group operates.

CRISIL believes that the Century group will continue to benefit over the medium term from its established market position in the plywood business with stable accruals. The outlook may be revised to 'Positive' if the group generates larger-than-expected cash accruals or its promoters infuse a sizeable amount of fresh equity, resulting in an improvement in its capital structure and debt protection metrics. Conversely, the outlook may be revised to 'Negative' if the Century group contracts more-than-expected debt for meeting its capex or working capital requirements, or if its accruals are less than expected, most likely due to adverse movements in forex rates, resulting in a strain on its liquidity.

Shares of the company declined Rs 0.25, or 0.95%, to trade at Rs 26. The total volume of shares traded was 15,061 at the BSE (1.17 p.m., Thursday).