CRISIL enhanced rated amount while retaining 'AA/Stable/A1+' ratings on Ipca Laboratories Rs 500-million non-convertible debenture issue on the company's request as there is no CRISIL-rated instrument currently outstanding in the programme. The rated amount enhanced to Rs 500 million from Rs 210 million. The ratings on the company's other debt programmes and bank facilities have been reaffirmed at 'CRISIL AA/Stable/CRISIL A1+'.

The ratings continue to reflect Ipca's well-diversified business risk profile (spread across therapeutic segments and geographies), established position in the formulations segment,  in both the domestic and international markets, and integrated operations. The ratings also factor in the company's sound financial risk profile, marked by a robust capital structure and healthy debt protection metrics. These rating strengths are partially offset by Ipca's working-capital-intensive operations, exposure to intensifying competition in the pharmaceutical industry, and susceptibility to regulatory changes in the domestic and international markets.

CRISIL believes that Ipca will maintain a healthy business risk profile over the medium term, supported by its established position in diversified therapeutic segments and geographies. The healthy cash flows from operations are likely to result in strong cash accruals, which will enable the company to support its debt protection metrics. The outlook may be revised to 'Positive' if the company achieves significantly high and sustainable revenue growth in key therapeutic segments across geographies while maintaining its operating profitability, and improves its working capital management. Conversely, the outlook may be revised to 'Negative' if Ipca undertakes a considerably large debt-funded capital expenditure programme, thereby impacting its financial risk profile.

Shares of the company gained Rs 2.05, or 0.3%, to settle  at  Rs 686.45.  The total volume of shares traded  was  21,677 at  the BSE (Monday).