CRISIL has reaffirmed 'BBB/Stable' rating on the bank facilities of Bhagyanagar India (BIL). The rating continues to reflect BIL's reputed client base, and steady revenue stream from the windmill segment. The ratings also factor in the revenues that BIL is expected to generate from its' newly commissioned solar power plant.

These rating strengths are partially offset by the susceptibility of BIL's margins to volatility in raw material prices, fluctuations in foreign exchange (forex) rate as the company keeps its forex exposure unhedged, and its moderate debt protection metrics; moreover, a significant proportion of BIL's capital is currently being deployed in land bank which is susceptible to downturn in realty market in Andhra Pradesh.

CRISIL believes that BIL will continue to benefit over the medium term from its healthy relationships with its key customers. The outlook may be revised to 'Positive' if the company reports sustained increase in its revenues and profitability, backed by product diversification, together with improvement in its debt protection metrics and liquidity. Conversely, the outlook may be revised to 'Negative' in case BIL faces pressures on its demand and profitability, leading to deterioration in its financial risk profile.

Shares of the company closed at Rs 10.70. The total volume of shares traded was 1,240 at the BSE (Thursday).