CRISIL has enhanced the rated amount while retaining 'AA+/Stable/A1+' on the short-term debt programme, and bank facilities of Pidilite Industries. The rated amount enhanced to Rs 2.5 billion from Rs 1 billion.

CRISIL's ratings continue to reflect Pidilite's leadership position in the consumer adhesive and sealant market segment, its strong brand management, backed by extensive marketing and distribution network, and robust financial risk profile. These rating strengths are partially offset by competitive pressures in the industrial chemicals segment, which restricts Pidilite's pricing power, and by the weak performance of its overseas subsidiaries.

CRISIL believes that healthy revenue growth and operating profitability will lead to a strong financial risk profile for Pidilite, marked by healthy gearing and strong debt protection metrics, over the medium term. The outlook may be revised to 'Positive' if Pidilite reports sizeable revenue growth and operating profitability. Conversely, the outlook may be revised to 'Negative' if the company reports substantially low revenue growth and operating profitability, resulting in weak debt protection metrics and capital structure, or makes substantial investments in its PCR project.

Shares of the company gained Rs 7.15, or 1.84%, to trade at Rs 396. The total volume of shares traded was 10,749 at the BSE (2.03 p.m., Tuesday).