Shilpi Cable Technologies (SCTL), a specialist in a wide variety of cables used in telecom, automotive and energy segment, has been assigned a long-term rating of 'A-' by India Rating and Research (Ind-Ra) better known as Fitch Ratings.

The rating 'IND A-' indicates adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk.

The key rating drivers that contributed to this rating are the group's revenue that grew at a compounded annual growth rate of 82% over FY12 to Rs 32 billion in FY15.

The growth was driven by strong revenue growth in both domestic and international operations at a growth rate compounded annually of 45% and 197%, respectively, over FY12-FY15.

Manish Goel, managing director of Shilpi Cable Technologies said, "The ‘IND A-’ for long term re-affirms our balance sheet strength & cash flow visibility. All the industries that SCTL is serving are currently going through a very exciting phase, we look forward to capitalizing that. With IND A-, our business outlook looks positive and we look forward to achieving our goal of becoming a billion dollar company by 2020."

The domestic revenue growth was also driven by diversification in product portfolio as well as end-user industries. The group has three operating segments: radio frequency (RF) cables, small diameter non-RF cables and copper conductors, which contributed 24%, 39% and 37%, respectively, to FY15 revenue.

Other factors include low customer concentration, comfortable interest coverage, low capex requirements, working capital intensive domestic operations, raw material price fluctuations and international trading operations.

Shares of the company gained Rs 3.2, or 5.65%, to trade at Rs 59.85. The total volume of shares traded was 80,801 at the BSE (1.54 p.m., Monday).