CRISIL has enhanced the rated amount on Technofab Engineering (TEL) on the bank facilities. The rated amount enhanced to Rs 9 billion from Rs 8.3 billion for total bank loan facilities.

CRISIL's ratings continue to reflect TEL's comfortable financial risk profile, marked by a healthy net worth, and its diversified end-user industry profile underpinned by a healthy order book of around Rs 13 billion as of February 2014.

These rating strengths are partially offset by TEL's reduced financial flexibility because of increased working capital requirements, susceptibility to delays in implementing projects and swings in profitability stemming from increased competition, work mix in the order book, and volatility in raw material prices and foreign exchange rates.

CRISIL believes that TEL will continue to benefit from its healthy order flow over the medium term amid tough industry conditions. The outlook may be revised to 'Positive' if TEL reports a substantial increase in its revenue and cash accruals backed by a significant improvement in order execution, while maintaining its capital structure and effectively managing its profitability.

Conversely, the outlook may be revised to 'Negative' if significant delays in order implementation impair TEL's cash accruals, profitability, and working capital requirements, or if it undertakes a large debt-funded capital expenditure programme, thereby adversely impacting its financial risk profile.

Shares of the company gained Rs 2.05, or 3.21%, to trade at Rs 65.95. The total volume of shares traded was 1,541 at the BSE (12.40 p.m., Friday).