CRISIL has reaffirmed 'A1+' rating on the bank facilities of Ingersoll Rand (India) (IRIL). The ratings continue to reflect IRIL's established position with strong brands in the domestic compressor manufacturing industry, and the technological and operational support that it receives from its parent Ingersoll Rand Co, USA.

The ratings also factor in IRIL's robust financial risk profile marked by debt-free balance sheet and ample liquidity. These rating strengths are partially offset by IRIL's exposure to risks related to cyclicality in its end-user segments, and the moderate susceptibility of its profitability to volatility in raw material prices.

CRISIL believes that IRIL will continue to benefit over the medium term from its established business position in the domestic compressor segment. CRISIL also believes that IRIL will maintain its robust financial risk profile, marked by strong capital structure and ample liquidity, over the medium term.

The outlook may be revised to 'Positive' if IRIL's scale of operations improves substantially, most likely on account of greater diversification or significant increase in its market share, while maintaining its profitability. Conversely, the outlook may be revised to 'Negative' in case of significant debt-funded capital expenditure programmes/acquisitions, or significant increase in IRIL's exposure to group companies, or significant and sustained weakening in its operating profitability.

Shares of the company gained Rs 2.25, or 0.58%, to trade at Rs 387. The total volume of shares traded was 2,627 at the BSE (2.23 p.m., Monday).