CRISIL has reaffirmed 'AA+/Stable/A1+' ratings on the non-convertible debentures and short-term debt programme of Birla Corporation (BCL). The rating continues to reflect its robust financial risk profile, established position in the cement industry, and healthy operating efficiencies.

These rating strengths are partially offset by the continued ban on mining operations in Chanderia (Rajasthan), and the company's exposure to risks related to the commoditised nature of cement, input cost pressures and to downturns in the cement industry.

CRISIL believes that BCL will maintain its strong debt protection metrics over the medium term, despite pressure on its operating margins, because of its conservative capital structure and strong cash flows.

The outlook may be revised to 'Positive' if the company strengthens its market reach, after commissioning new grinding and blending units, improves its operating margin across businesses, and sustains its current conservative capital structure. Conversely, the outlook may be revised to 'Negative' if BCL faces sustained pressure on profitability because of  prolonged disruption of limestone mining operations in Chanderia and input cost pressures, or if it undertakes large debt-funded acquisitions or capital expenditure programmes.

Shares of the company gained Rs 12.05, or 4.02%, to trade at Rs 312. The total volume of shares traded was 2,877 at the BSE (2.20 p.m., Monday).