CRISIL has reaffirmed 'AA-/Stable/A1+' on the bank facilities of Transport Corporation of India (TCIL). The ratings continue to reflect TCIL's leading market position in the logistics business, extensive infrastructure, diversified revenue profile, and healthy financial risk profile marked by large net worth supported by steady accretion to reserves.

These rating strengths are partially offset by the large share of the conventional low-margin transportation (freight) business in TCIL's revenue, and the company's large working capital requirements.

CRISIL believes that TCIL will maintain its business risk profile over the medium term, supported by increased revenue contribution from its high-margin XPS and SCS divisions. TCIL's financial risk profile is expected to remain healthy over the medium term, supported by steady accretion to reserves.

The outlook may be revised to 'Positive' in case of significant and sustained improvement in TCIL's revenue mix and profitability and sustained healthy financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of weakening of TCIL's financial risk profile, most likely because of deterioration in debt protection metrics on account of reduction in profitability, larger-than-expected debt-funded capital expenditure, or more-than-expected exposure to group companies.

Shares of the company declined Rs 2.55, or 2.01%, to settle at Rs 124.40. The total volume of shares traded was 11,135 at the BSE (Tuesday).