CRISIL has revised its rating outlook on the long-term bank facility of Rallis India to 'Positive' from 'Stable', while reaffirming its rating at 'AA'. CRISIL's ratings on the company's commercial paper programme and short-term bank facilities have been reaffirmed at 'A1+'. CRISIL has also withdrawn its rating on Rallis' non-convertible debenture programme at the company's request as the same has been entirely repaid.

CRISIL believes that healthy prospects for domestic crop protection players, increasing scaling up of international revenue as well as non-crop protection businesses in the domestic market, and healthy profitability will enable Rallis improve its business risk profile over the medium term. Further, healthy growth in cash accruals is also expected to benefit Rallis' financial risk profile over the medium term.

The rating may be upgraded if Rallis is able to sustain its strong business performance over the medium term, and further strengthen its financial risk profile, besides significantly enhancing its liquidity. Conversely, the outlook may be revised to 'Stable' if Rallis' business performance weakens considerably, and its capital structure and key debt protection metrics are significantly impacted by larger-than-expected debt-funded capital spending, acquisitions, or elongation of its working capital cycle.

Shares of the company gained Rs 1.45, or 0.65%, to settle at Rs 225. The total volume of shares traded was 31,261 at the BSE (Monday).