CRISIL has reaffirmed 'AA-/Stable' ratings on the bank facilities of Transport Corporation of India (TCIL). The rating continue to reflect TCIL's leading market position in the logistics business, extensive infrastructure, diversified revenue profile, and healthy financial risk profile marked by large net worth supported by steady accretion to reserves.

These rating strengths are partially offset by the large share of revenues from the conventional low-margin transportation (freight) business in TCIL's overall revenues, and the company's large working capital requirements.

CRISIL believes that TCIL will maintain its business risk profile over the medium term, supported by increased revenue contribution from its high-margin express cargo and supply chain solutions business divisions. TCIL's financial risk profile is also expected to remain healthy over the medium term, supported by steady accretion to reserves.

The outlook may be revised to 'Positive' if there is significant and sustained improvement in TCIL's revenue mix and profitability while it maintains its healthy financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of weakening in TCIL's financial risk profile, most likely caused by deterioration in its debt protection metrics due to reduction in its profitability, larger-than-expected debt funded capex, or if TCIL takes more-than-expected  exposure to its group companies.

Shares of the company declined Rs 2.6, or 2.45%, to trade at Rs 103.40. The total volume of shares traded was 66,115 at the BSE (11.11 a.m., Wednesday).