CRISIL has enhanced the rated amount while retaining 'AA-/Positive' ratings on Supreme Industries on the bank loan facilities and short-term debt programme. The rated amount enhanced to Rs 10.15 billion from Rs 9.23 billion for total bank loan facilities.

CRISIL's ratings continue to reflect Supreme Industries' strong market position supported by its diversified revenue profile with increasing contribution from value-added products, and adequate financial risk profile. These rating strengths are partially offset by the susceptibility of the company's operating performance to volatility in raw material prices and to intense industry competition.

CRISIL believes that Supreme will improve its overall credit risk profile, backed by continuing strong operating performance and a comfortable capital structure. The ratings may be upgraded if Supreme continues to register healthy growth in cash accruals backed by capacity additions, coupled with a timely correction in working capital levels.

Conversely, the outlook may be revised to 'Stable' if there is sustained decline in Supreme's business volumes and operating margins, or weakening in its capital structure because of larger-than-expected debt-funded capex or delay in correction of working capital levels.

Shares of the company gained Rs 6.95, or 1.57%, to settle at Rs 450.10. The total volume of shares traded was 13,240 at the BSE (Wednesday).