CRISIL has enhanced the rated amount while retaining 'BBB+/Stable/A2' on the bank facilities of Shilpi Cable Technologies. The rated amount enhanced to Rs 7 billion from Rs 3.9 billion for certificate of deposits. CRISIL's ratings continue to reflect Shilpi group's established market position, marked by its diverse product portfolio and reputed clientele.

Commenting on the rationale, the rating agency said, ''The ratings also factor in the group's comfortable financial risk profile, supported by its average capital structure and comfortable debt protection metrics. These rating strengths are partially offset by the Shilpi group's large working capital requirements and exposure to risks related to intense competition.''

CRISIL believes that the Shilpi group will maintain a stable credit risk profile over the medium term, on the back of its diversified product portfolio and healthy customer relationships. The outlook may be revised to 'Positive' in case of improvement in working capital management along with improvement in profitability leading to improvement in financial risk profile.

Conversely, the outlook may be revised to 'Negative' if the group's financial risk profile weakens because of considerable pressure on its operating profitability and revenue, or substantial debt-funded capital expenditure, or higher than expected increase in working capital management, the rating agency said.

Shares of the company gained Rs 1.75, or 2.15%, to trade at Rs 83.25. The total volume of shares traded was 70,656 at the BSE (2.05 p.m., Wednesday).