CRISIL has reaffirmed 'AAA/Stable/A1+' ratings on the bank facilities of Bharat Heavy Electricals (BHEL). The ratings continue to reflect BHEL's leading position in the power and industrial electrical equipment markets in India, healthy order book, and strong financial risk profile. These rating strengths are partially offset by the increasing receivables and company's exposure to intense competition and structural issues in order execution in the power sector.

CRISIL believes that BHEL will continue to maintain its strong market position and would benefit from its sizeable order book over the medium term. The company's sound financial risk profile will enable it to withstand economic downturns.

The outlook may be revised to 'Negative' if BHEL's profitability declines sharply due to slowdown in order execution and pricing pressures or if the company's receivable position worsens significantly leading to a pressure on the financial risk profile or if there are sizeable debtor write offs impacting BHEL's financial metrics.

Shares of the company gained Rs 2.95, or 1.32%, to settle at Rs 226.35. The total volume of shares traded was 581,417 at the BSE (Monday).