India Ratings & Research (Ind-Ra) has upgraded Indian Acrylics (IAL) long-term issuer rating to 'IND BBB-' from 'IND BB+'. The outlook is stable.

The upgrade reflects the substantial improvement in IAL's financial and business position. In FY14 (year end March), revenue grew to Rs 6,273 million from Rs 3,875 million in FY13 on a 65% yoy increase in volumes driven by higher capacity utilisation.

Sales price per kg also moved up to Rs 171.2 in FY14 from Rs 165.2 in FY13 and EBITDA margin increased to 4.6% from 1.8% due to stable raw material prices and a reduction in power cost and other input costs. Export revenue also picked up to Rs 1,863.9 million in FY14 from Rs 559.3 million in FY13.

Shares of the company gained Rs 0.24, or 4.79%, to trade at Rs 5.25. The total volume of shares traded was 38,868 at the BSE (12.33 p.m., Monday).