CRISIL?s ratings on the bank facilities of Alkyl Amines Chemicals Ltd (AACL) continue to reflect AACL?s leadership in the ethyl amines market, driven by its strong in-house technology and research and development (R&D) capabilities, and diversified product portfolio and customer base. These rating strengths are partially offset by AACL?s average financial risk profile, marked by moderate gearing and debt protection metrics, long working capital cycle, and susceptibility to volatility in commodity prices.

Outlook: Stable

CRISIL believes that AACL will maintain its financial risk profile over the medium term on the back of increasing cash accruals. The outlook may be revised to ?Positive? in case of significant improvement in AACL?s financial risk profile mainly through strengthening of its debt protection metrics. Conversely, the outlook may be revised to ?Negative? if there is decline in AACL?s operating margin, or if the company undertakes a larger-than-expected, debt-funded capital expenditure programme, resulting in deterioration in its financial risk profile