CRISIL has enhanced the rated amount while retaining 'A-/Stable' ratings on GRP for bank loan facilities. The rated amount enhanced to Rs 1,054.6 million from Rs 900 million.

CRISIL's ratings continue to reflect GRP's established market position in the reclaimed rubber industry and healthy financial risk profile, marked by strong debt protection metrics. These rating strengths are partially offset by the susceptibility of GRP's operating margin to volatility in scrap rubber prices and in foreign exchange rates, and the company's high dependence on the tyre industry.

CRISIL believes that GRP will maintain its business risk profile, supported by its established market position and promoters' industry experience. The outlook may be revised to 'Positive' if the company scale up its operations and simultaneously improve its profitability. Conversely, the outlook may be revised to 'Negative' if GRP's operating performance deteriorates significantly or the company undertakes any large, debt-funded capital expenditure programme.

Shares of the company declined Rs 42.1, or 3.69%, to settle at Rs 1,097.90. The total volume of shares traded was 145 at the BSE (Tuesday).