CRISIL has reaffirmed 'AA+/Stable/A1+' on the debt instruments and bank facilities of Finolex Cables (FCL). The ratings continue to reflect FCL's stable business risk profile driven by its strong market position in the electrical cables segment backed by its established brand and integrated operations.

The ratings also reflect FCL's healthy financial risk profile driven by strong accruals. These rating strengths are partially offset by the vulnerability of FCL's profitability to volatility in raw materials prices and to economic downturns, and its exposure to intense competition in the sector.

CRISIL believes that FCL will maintain its stable business risk profile over the medium term, driven by its dominant position in the electrical cables segment. The company's financial risk profile is expected to remain healthy over the medium term, supported by its healthy cash accruals. The outlook may be revised to 'Positive' if FCL significantly improves its scale of operations and diversifies its revenue while maintaining its operating margin and its strong financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company's capital structure weakens, driven most likely by large acquisitions or capital expenditure, or if adverse business conditions result in a sharp decline in its revenue and profitability.

Shares of the company declined Rs 11.75, or 4.51%, to trade at Rs 248.95. The total volume of shares traded was 53,481 at the BSE (3.25 p.m., Friday).