India Ratings and Research (Ind-Ra) has upgraded the Hi-Tech Gears' (HGL) Long-Term Issuer Rating to 'IND A+' from 'IND A'. The outlook is stable. 

The rating upgrade reflects the growth in HGL's revenue in FY15 as well as improvement in its credit profile. The ratings also take into account the reduction in HGL's customer concentration, with its largest customer, Hero MotoCorp's (HML) contribution to revenue declining to 50.4% in FY15 (FY14: 55.4%; FY13: 62.8%).

The company's liquidity remained comfortable as strong cash flow generation over FY13-FY15 enabled it to fund capex through internal accruals.

Ind-Ra expects the company's profitability to continue to benefit from the increase in commercial vehicle (CV) sales and consequently improve the credit metrics further over FY16-FY17.