CRISIL has reaffirmed its ratings on the short-term debt programme, and bank facilities of Pidilite Industries (Pidilite) at 'AA+/Stable/A1+'. CRISIL has withdrawn its ratings on Pidilite's Rs 600 million non-convertible debenture programme as there is no amount outstanding as on date.

The ratings continue to reflect Pidilite's leadership position in the consumer adhesive and sealant market segment, strong brand management, backed by extensive marketing and distribution network and robust financial risk profile.

These rating strengths are partially offset by the competitive pressures in the industrial chemicals segment, which restricts Pidilite's pricing power, and the weak performance of its overseas subsidiaries.

CRISIL believes that Pidilite will maintain healthy revenue growth and operating profitability, leading to a strong financial risk profile, marked by healthy gearing and strong debt protection metrics, over the medium term. The outlook may be revised to 'Positive' if Pidilite reports sizeable revenue growth and operating profitability.

Conversely, the outlook may be revised to 'Negative' if the company records substantially low revenue growth and operating profitability, resulting in deterioration in its debt protection metrics and capital structure, or makes substantial investments in its PCR project.

Shares of the company declined Rs 5, or 1.55%, to trade at Rs 317. The total volume of shares traded was 9,648 at the BSE (12.58 p.m., Tuesday).