The rating on the short-term bank facilities has been reaffirmed at ‘CRISIL A1+’.
The revision in outlook takes into account the lower-than-expected improvement in business risk profile as indicated by muted revenue growth in past few years and operating margin remaining range bound at around 16%.
The ratings continue to reflect the strong financial risk profile of TIIL, diverse product profile, established market position in the drum closure industry and increasing market share in the scaffolding industry.
These strengths are partially offset by weaker operating performance of the yarn and fabric division.
CRISIL Ratings has consolidated the business and financial risk profiles of TIIL, its domestic and foreign subsidiaries, step-down subsidiaries, limited liability partnership and joint ventures because of strong financial and operational linkages between them.
At around 9:43 AM, Technocraft Industries (India) was trading at Rs468 apiece down by Rs9.45 or 1.98% on Sensex.