CRISIL has enhanced the rated amount while retaining 'A/Stable' ratings on Mirza International (MIL)'s bank facilities. The rated amount enhanced to Rs 3.56 billion from Rs 3.06 billion for total bank loan facilities.

The rating continues to reflect the extensive experience of MIL's promoters in the footwear manufacturing segment, the company's established market position as a prominent footwear exporter in India, and integrated operations. The ratings also factor in MIL's sound financial risk profile, marked by a healthy net worth, moderate gearing, and comfortable debt protection metrics.

The company has sustained its healthy financial risk profile, despite its debt-funded capital expenditure (capex) programme of over Rs.1 billion over the two years through Mar. 31, 2013. CRISIL believes that MIL will maintain its sound financial risk profile over the medium term, supported by its healthy cash accruals from operations.

These rating strengths are partially offset by the company's large working capital requirements, geographic and customer concentration in its revenue profile, and the susceptibility of the company's margin to fluctuations in foreign exchange (forex) rates.

CRISIL believes that MIL will continue to benefit from its integrated operations and the promoters' extensive industry experience, over the medium term. The outlook may be revised to 'Positive' if the company significantly improves its revenue diversification while maintaining its growth and operating margin. Conversely, the outlook may be revised to 'Negative' if MIL's financial risk profile weakens, driven by a larger-than-expected debt-funded capex programme, or pressure on its revenues and profitability due to intense competition.

Shares of the company declined Rs 0.25, or 0.89%, to settle at Rs 27.85. The total volume of shares traded was 45,010 at the BSE (Friday).