CRISIL has enhanced the rated amount on the bank facilities of Porwal Auto Components (PACL) while affirming 'BB+/Stale' rating. The rated amount enhanced to Rs 184 million from Rs 109 million for total bank loan facilities.

CRISIL's ratings continue to reflect PACL's healthy financial risk profile, marked by low gearing, and comfortable debt protection metrics, promoters' extensive industry experience, and established relationships with customers.

These rating strengths are partially offset by PACL's small scale of operations and large working capital requirements, susceptibility to cyclicality in demand from end-user industries and to volatility in raw material prices, customer concentration in its revenue profile, and weak operating efficiency.

CRISIL believes that PACL's financial risk profile will remain healthy on the back of conservative gearing and above-average debt protection metrics. The outlook may be revised to 'Positive' if the company increases its scale of operations and profitability, leading to an increase in its cash accruals.

Conversely, the outlook may be revised to 'Negative' if PACL's sales and profitability decline, leading to weaker-than-expected cash accruals, larger-than-expected working capital requirements, or debt-funded capital expenditure programme.

Shares of the company declined Rs 0.11, or 3.43%, to settle at Rs 3.10. The total volume of shares traded was 221 at the BSE (Thursday).